Which of the Following Is a Statement of Weak-Form Efficiency

question 13

Multiple Choice

Which of the following is a statement of weak-form efficiency?

• A)If markets are efficient in the weak form, then it is impossible to make consistently superior profits by using trading rules based on past returns.
• B)If markets are efficient in the weak form, then prices will adjust immediately to public information.
• C)If markets are efficient in the weak form, then prices will adjust immediately to public information and prices reflect all information.
• D)If markets are efficient in the weak form, then prices reflect all information.

---

Definitions:

Comparative Advantage

The capability of a person, business, or nation to manufacture a product or provide a service with a smaller opportunity cost compared to rivals.

Absolute Advantage

The capability of a country, entity, or individual to produce a particular good or service more efficiently than others, using the same amount of resources.

Producing

The act of creating goods or services through the combination of labor, capital, and resources, intended for exchange or personal use.

Exchange

The process by which parties trade goods, services, or financial instruments, facilitating the transfer of ownership and value.