The weak form of the efficient market hypothesis implies

Question

Quizplus · Accepted Answer

The weak form of the efficient market hypothesis states that past price behavior does not lead to superior investment decisions, meaning that studying the past prices of securities will not provide an advantage in predicting future prices. Therefore, option D is the correct answer. Option A is incorrect as it implies that securities prices are randomly determined, which is not a necessary implication of the weak form of the hypothesis. Option B is not necessarily true, as studying past price behavior may not always result in inferior investment decisions. Option C is also not the correct answer, as the weak form of the hypothesis does not suggest that past securities prices reliably predict future prices.

The Weak Form of the Efficient Market Hypothesis Implies