Which of the following is a statement of weak-form efficiency?
A)If markets are efficient in the weak form, then it is impossible to make consistently superior profits by using trading rules based on past returns.
B)If markets are efficient in the weak form, then prices will adjust immediately to public information.
C)If markets are efficient in the weak form, then prices will adjust immediately to public information and prices reflect all information.
D)If markets are efficient in the weak form, then prices reflect all information.

Question

Quizplus · Accepted Answer

A statement of weak-form efficiency suggests that past price and return data cannot be used to generate consistently superior profits, which is described in option A. Options B, C, and D describe semi-strong form efficiency and strong-form efficiency, respectively.

Which of the Following Is a Statement of Weak-Form Efficiency