If the weak form of efficient markets hold,then:
A)technical analysis is useless.
B)stock prices reflect all information contained in past prices.
C)stock prices follow a random walk.
D)All of the above.
E)None of the above.

Question

Quizplus · Accepted Answer

If the weak form of efficient markets holds, then stock prices already reflect all information contained in past prices. Therefore, technical analysis becomes useless as it relies on patterns in past prices to predict future prices. Additionally, since all past price information is already incorporated into current prices, stock prices would follow a random walk. Therefore, D is the best choice as all three statements are true.

If the Weak Form of Efficient Markets Hold,then