Any predictable trend in the same direction as the price change would be evidence of an efficient market.

Question

Quizplus · Accepted Answer

This statement is incorrect. If there was a predictable trend in the same direction as the price change, this would actually suggest that the market is not efficient, as participants would be able to make profits by exploiting this predictable trend. In an efficient market, prices are random and unpredictable, making it difficult to consistently earn profits based on past trends or patterns.

Any Predictable Trend in the Same Direction as the Price