You have discovered from looking at charts of past stock prices that if you buy just after a stock
price has declined for three consecutive days, you make money every time! This is a violation of
________ market eﬃciency.
A) weak form
B) semi-weak form
C) semi-strong form
D) strong form
E) TSX stock

Question

Quizplus · Accepted Answer

Weak form market efficiency suggests that past stock prices and patterns cannot be used to predict future stock prices. If you can consistently make money by buying after a stock price has declined for three consecutive days, it indicates that past price information is being used to predict future prices, thus violating weak form efficiency.

You Have Discovered from Looking at Charts of Past Stock