If you excel in analyzing the future outlook of firms, you would prefer that the financial markets be ____ form efficient so that you can have an advantage in the marketplace.

Question

Quizplus · Accepted Answer

In weak form efficient markets, all past trading information is already reflected in stock prices, but it does not include all publicly available or inside information. Therefore, if you excel in analyzing the future outlook of firms, you would prefer the market to be weak form efficient, as it allows for the possibility to gain an advantage through analysis of publicly available information and forecasts about the future, which are not yet reflected in stock prices.

If You Excel in Analyzing the Future Outlook of Firms