An analyst who relies upon past cycles of stock pricing to make investment decisions is:
A)performing fundamental analysis.
B)relying upon the strong-form of market efficiency.
C)assuming that the market is not weak-form efficient.
D)relying upon the random walk of stock prices.

Question

Quizplus · Accepted Answer

An analyst who relies upon past cycles of stock pricing is assuming that the market is not weak-form efficient, meaning that past prices are not fully reflected in current stock prices. This goes against the assumption of weak-form efficient markets, which states that past prices cannot be used to generate abnormal returns.

An Analyst Who Relies Upon Past Cycles of Stock Pricing