The weak form of the efficient market hypothesis states that
A) successive price changes are dependent.
B) successive price changes are independent.
C) successive price changes are biased.
D) successive price changes depend on trading volume.
E) properly specified trading rules are of value.

Question

Quizplus · Accepted Answer

The weak form of the efficient market hypothesis states that successive price changes are independent, meaning that past price changes cannot be used to predict future price changes. This implies that stock prices already reflect all historical market data and there is no predictable pattern in the stock prices.

The Weak Form of the Efficient Market Hypothesis States That