In order to test the efficient-market hypothesis in the weak form, researchers have used the following methods except:
A) Estimation of the serial correlation (autocorrelation) for securities and markets
B) Measurement of the profitability of trading rules used by technical analysts
C) Measurement of how rapidly security prices adjust to different news items
D) All of the above are methods used for testing weak-form market efficiency

Question

Quizplus · Accepted Answer

The weak form of the efficient-market hypothesis focuses on past price and volume data, so testing it involves methods like serial correlation and profitability of trading rules, not how prices adjust to news, which relates to semi-strong form efficiency.

In Order to Test the Efficient-Market Hypothesis in the Weak