Filter rules stock trading may outperform the market, but adjustment of the returns for _____ tends to show no consistent superior performance, indicating the presence of _____ stock market efficiency.
A) insider trading information; semi-strong
B) inflation; weak form
C) transaction costs; weak form
D) the extent of professional experience; strong form

Question

Quizplus · Accepted Answer

Transaction costs adjustment often reveals that filter rules do not consistently outperform the market, aligning with the weak form of market efficiency which posits that past trading information is already reflected in stock prices.

Filter Rules Stock Trading May Outperform the Market, but Adjustment