Weak-Form Efficiency Implies That Past Stock Returns

question 19

Multiple Choice

Weak-form efficiency implies that past stock returns

• A)form patterns that tend to repeat.
• B)are major inputs to investors for forming trading strategies.
• C)do not help to predict future returns.
• D)are difficult to explain.

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Definitions:

Face Value

The nominal value or dollar value printed on a bond, note, or other financial instrument, indicating the amount due at maturity.

Effective Annual Yield

Effective Annual Yield is the return on an investment for a one-year period, taking into account the effect of compounding interest.

Semi-Annually

Semi-annually refers to an event or action occurring twice a year, often used in the context of interest payments or reporting periods.

Yield To Maturity

The total return anticipated on a bond if the bond is held until its maturity date, factoring in its current price, interest payments, and maturity value.