If It Proves Possible to Make Abnormal Profits Based on Information

question 15

Multiple Choice

If it proves possible to make abnormal profits based on information regarding past stock prices,then the market is:

• A) weak-form efficient.
• B) not weak-form efficient.
• C) semi strong-form efficient.
• D) strong-form efficient.

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Definitions:

Dividends

Payments by a corporation of all or part of its profit to its stockholders (the corporate owners).

Direct Investment

Describes the process of acquiring a controlling interest in foreign assets, such as a company or property, with the aim of managing the investment directly.

Japanese Company

A business entity registered and operating in Japan, often characterized by its management style and hierarchical structure.

Software Company

A business entity that specializes in developing, distributing, and maintaining software applications or systems.