According to theory,studying historical prices in order to identify mispriced stocks will:
A)only work if the market is at least weak form efficient.
B)work as long as the market is less than strong form efficient.
C)work only in a strong form efficient market.
D)not work in any market regardless of the level of efficiency.
E)not work if the market is at least weak form efficient.

Question

Quizplus · Accepted Answer

In a weak form efficient market, all past trading information is already reflected in stock prices, so studying historical prices would not help in identifying mispriced stocks.

According to Theory,studying Historical Prices in Order to Identify Mispriced