A market that is weak form efficient is not consistent with abnormal returns from:
A) insider trading.
B) financial analysis.
C) technical analysis.

Question

Quizplus · Accepted Answer

In a weak form efficient market, all past trading information is already reflected in stock prices, meaning that technical analysis, which relies on historical price and volume data, would not yield consistent abnormal returns. Insider trading could still lead to abnormal returns as it involves non-public information, and financial analysis could also potentially yield abnormal returns as it involves evaluating a company's financial health and prospects, which might not be fully reflected in stock prices.

A Market That Is Weak Form Efficient Is Not Consistent