Research on the weak-form efficient market suggests that:
A) past trends cannot be used to predict the future
B) technical analysis has limited value
C) stock prices follow a random walk
D) all of the above

Question

Quizplus · Accepted Answer

The weak-form efficient market hypothesis states that past trends cannot be used to predict the future, therefore technical analysis, which relies on past trends, has limited value. Instead, stock prices are believed to follow a random walk, making it impossible to consistently predict future stock prices based on past performance. Therefore, all of the above choices are correct.

Research on the Weak-Form Efficient Market Suggests That