An Investor Discovers That for a Certain Group of Stocks

question 10

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) semi-strong form of the efficient market hypothesis.
• C) strong form of the efficient market hypothesis.
• D) weak form of the efficient market hypothesis.

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