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 to make investment decisions is assuming that the market is not weak-form efficient. This is because the weak-form efficient market hypothesis states that past prices and trends cannot be used to predict future stock prices. Therefore, the analyst is going against this hypothesis by relying on past pricing cycles.

An Analyst Who Relies Upon Past Cycles of Stock Pricing