According to the weak-form efficient market hypothesis, which of the following types of information are fully reflected in stock prices?
A) rates of return, trading volume, and news about the economy
B) dividend and earnings announcements
C) rates of return, trading volume, and block trades
D) earnings announcements and rates of return
E) insider information

Question

Quizplus · Accepted Answer

The weak-form efficient market hypothesis posits that all past trading information, including rates of return, trading volume, and block trades, is fully reflected in stock prices. This suggests that analyzing past price movements or trading volumes (technical analysis) will not provide investors with an edge in predicting future price movements.

According to the Weak-Form Efficient Market Hypothesis, Which of the Following