Question

22) group of stocks, large positive price changes are hanges. This finding is a violation of the 22) An investor discovers that for a certain group always followed by large negative price changes. This find form of the efficient market hypothesis. A) strong B) semistrong C) weak D) moderate E) historical 23

Answer 1

Option C weak Form

Weak form efficiency states that stock prices reflect all current information. as investor discovered that price of stock decrease after increase in price will violate weak form because weak form states that the past prices will not help in predicting future prices. investor used past prices to determine future prices.