In order to confirm the weak-form efficient market hypothesis, an examination of stock price runs over time would reveal that stock price changes over time were
A) highly positively correlated.
B) moderately positively correlated.
C) highly negatively correlated.
D) moderately negatively correlated.
E) not correlated.

Question

Quizplus · Accepted Answer

If the weak-form efficient market hypothesis holds true, then stock price changes should be random and unpredictable, meaning that they should not be correlated over time. Thus, the correct choice is E, as it represents the absence of correlation.

In Order to Confirm the Weak-Form Efficient Market Hypothesis, an Examination