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:

Social Mechanisms

Processes and structures within society that contribute to particular social outcomes, influencing how societal norms and interactions occur.

Gender Distinctions

Socially and culturally constructed differences between males and females, often based on attributes, roles, and expectations.

Interactional

Pertaining to or involving interaction between individuals or entities.

Societal

Pertaining to or involving society and its institutions, norms, and values.