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

Question

Quizplus · Accepted Answer

The analyst is assuming that the market is not weak-form efficient, as they are using past stock pricing to make investment decisions. Weak-form efficiency suggests that past prices and patterns cannot be used to predict future prices, which is contradicted by the analyst's approach.

An Analyst Who Relies on Past Cycles of Stock Pricing