If the weak form of market efficiency holds, then
I.technical analysis is useless;
II.stock prices reflect all information contained in past prices;
III.stock price returns follow a random walk
A)I only
B)I and II only
C)I, II, and III
D)I and III only

Question

Quizplus · Accepted Answer

The weak form of market efficiency suggests that all past trading information is already reflected in stock prices, making technical analysis ineffective. Consequently, stock prices follow a random walk, as future price movements are independent of past prices.

If the Weak Form of Market Efficiency Holds, Then