An Investor Discovers That for a Certain Group of Stocks

question 30

Multiple Choice

An investor discovers that for a certain group of stocks, large positive price changes are always followed by large negative price changes.This finding is a violation of the:

• A)moderate form of the efficient market hypothesis.
• B)semistrong form of the efficient market hypothesis.
• C)strong form of the efficient market hypothesis.
• D)weak form of the efficient market hypothesis.
• E)None of the above.

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Definitions:

Axes

Tools with a bladed head on a handle or helve, used for hewing, cleaving, chopping, or as weapons; in other contexts, refers to a reference line in graphs or coordinates in geometry.

Physical Disorders

Health problems that affect the body's structure or function not primarily originating from mental factors.

DSM-IV

The fourth edition of the Diagnostic and Statistical Manual of Mental Disorders, a classification system for psychiatric diagnoses published by the American Psychiatric Association.

Diabetes

A chronic health condition where the body is unable to properly process glucose, leading to high blood sugar levels.