Which of the following contradicts the proposition that the stock market is weakly efficient?
A) Over 25% of mutual funds outperform the market on average.
B) Insiders earn abnormal trading profits.
C) Every January, the stock market earns above-normal returns.
D) Applications of technical trading rules fail to earn abnormal returns.

Question

Quizplus · Accepted Answer

The weak form of market efficiency suggests that past price movements and volume data do not affect stock prices. If the market consistently earns above-normal returns every January, it implies that past patterns can predict future prices, contradicting weak form efficiency.

Which of the Following Contradicts the Proposition That the Stock