The Weak Form of the Efficient Market Theory Contends That

question 115

Multiple Choice

The weak form of the efficient market theory contends that

• A)past price performance is useless in predicting future price movements.
• B)past performance can help determine the general direction of future price movements.
• C)any publicly available information is useless in predicting future price movements.
• D)price movements are not random but follow a general trend over a period of time.

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Definitions:

Profit Center

A branch or division of a business that is directly responsible for generating its own revenue and profits.

Property Tax Expense

The cost incurred by property owners for taxes assessed on their land and buildings, recognized as an expense for the business.

Direct Expense

A cost that can be directly attributed to a specific cost object, such as a product, department, or project, making it easy to trace the expense directly to its source.

Profit Center

A part of an organization that is directly responsible for generating its own revenue and profits.