In order to confirm the weak-form efficient market hypothesis you could develop trading rules that consider
A) Advance-decline ratios.
B) Short sales.
C) Specialist activities.
D) Any of the above.
E) None of the above.

Question

Quizplus · Accepted Answer

Developing trading rules based on any of the given factors (advance-decline ratios, short sales, specialist activities) can help confirm the weak-form efficient market hypothesis. This is because if the market is weak-form efficient, these factors should not be able to consistently predict future price movements. If trading rules based on these factors are successful, it would indicate that the market is not weak-form efficient.

In Order to Confirm the Weak-Form Efficient Market Hypothesis You