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

Question

Quizplus · Accepted Answer

The weak form of the efficient market hypothesis states that past price movements and volume data do not affect stock prices, so patterns like large positive changes followed by large negative changes should not exist if the market is weak-form efficient.

An Investor Discovers That for a Certain Group of Equities,large