Which one of the following activities is likely to be useful if the market is only weak form efficient?
A) attempting to find the best times to buy and sell
B) attempting to find repeating pattern in stock price behavior
C) attempting to determine if stock prices have upward or downward momentum
D) studying financial, economic and industry information about a company

Question

Quizplus · Accepted Answer

In a weak form efficient market, all past trading information is already reflected in stock prices, meaning that technical analysis (like finding the best times to buy or sell, repeating patterns, or momentum) is unlikely to provide an edge. However, fundamental analysis, which involves studying financial, economic, and industry information about a company, could still be useful because this type of information might not be fully reflected in the stock prices yet.

Which One of the Following Activities Is Likely to Be