If the Weak Form of Market Efficiency Holds, Then

question 48

Multiple Choice

If the weak form of market efficiency holds, then

• A)technical analysis is useless.
• B)technical analysis is useless and stock prices reflect all information contained in past prices.
• C)technical analysis is useless, stock prices reflect all information contained in past prices, and stock price returns follow a random walk.
• D)technical analysis is useless and stock price returns follow a random walk.

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Definitions:

Credit Worthiness

An assessment of a borrower's ability to repay debts based on their financial history, credit score, and other factors indicating financial stability.

Implied Authority

The power of an agent to perform acts that are reasonably necessary to accomplish the purpose of an organization, even if not explicitly granted.

Express Authority

An agent’s authority that the principal voluntarily and specifically sets forth as oral or written instructions in an agency agreement.

Apparent Authority

A situation where a reasonable person would understand that an agent had the power to act on behalf of a principal, even if the agent did not have actual authority.