Which of the following statements is most correct?
A) Semistrong-form market efficiency implies that all private and public information is rapidly incorporated into stock prices.
B) Market efficiency implies that all stocks should have the same expected return.
C) Weak-form market efficiency implies that recent trends in stock prices would be of no use in selecting stocks.
D) All of the answers above are correct.
E) None of the answers above is correct.

Question

Quizplus · Accepted Answer

Weak-form market efficiency suggests that past price movements and trends cannot be used to predict future stock prices, as all historical information is already reflected in current prices.

Which of the Following Statements Is Most Correct