Which of the following is a statement of weak form efficiency?
I. If markets are efficient in the weak form, then it is impossible to make consistently superior profits by using trading rules based on past returns
II. If the markets are efficient in the weak form, then prices will adjust immediately to public information
III. If the markets are efficient in the weak form, then prices reflect all information
A) I only
B) II only
C) II and III only
D) III only

Question

Quizplus · Accepted Answer

Statement I is a statement of weak form efficiency, which states that past prices cannot be used to consistently make superior profits. Statement II is a statement of semi-strong form efficiency, stating that prices adjust to public information immediately, and statement III is a statement of strong form efficiency, stating that prices reflect all information, including private information.

Which of the Following Is a Statement of Weak Form