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 even weak-form efficient.
D) relying on the random walk of stock prices.

Question

Quizplus · Accepted Answer

Relying on past cycles of stock pricing contradicts the concept of weak-form market efficiency, which assumes that past prices and information are already reflected in the current prices of stocks. Instead, the analyst assumes that the market is not even weak-form efficient, making choice C the best option.

An Analyst Who Relies on Past Cycles of Stock Pricing