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If an Investor Believes That the Stock Market Is Efficient

Question 3

Multiple Choice

If an investor believes that the stock market is efficient at only the weak level, which of the following activities would he consider to be a waste of time and effort?


A) plotting the historical prices of a stock to look for a trend that will suggest when it is a good time to buy or sell that stock.
B) studying a firm's financial statements in an attempt to forecast the future cash flows of the firm.
C) analyzing current information about a firm as it is made public.
D) reading a column in the Wall Street Journal that he believes often hints at insider information.

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