Which of the following reflects support of weak form stock market efficiency?
A) point and figure charts
B) short interest ratio
C) Fibonacci numbers
D) none of the above

Question

Quizplus · Accepted Answer

Weak form stock market efficiency suggests that past trading information, such as prices and volume, is already reflected in stock prices, and thus cannot be used to achieve superior gains. Point and figure charts, short interest ratios, and Fibonacci numbers are all tools or techniques that traders use in an attempt to predict future market movements based on past data. If one believes in weak form efficiency, they would argue that such techniques cannot consistently outperform the market, as all past trading information is already incorporated into stock prices. Therefore, none of the options provided support weak form stock market efficiency.

Which of the Following Reflects Support of Weak Form Stock