The weak form of the efficient market hypothesis asserts that
A) stock prices do not rapidly adjust to new information contained in past prices or past data
B) future changes in stock prices cannot be predicted from past prices
C) technicians cannot expect to outperform the market
D) a and b
E) b and c

Question

Quizplus · Accepted Answer

The weak form of the efficient market hypothesis suggests that all past trading information is already reflected in stock prices, meaning future price movements cannot be predicted from past prices (B), and thus, technical analysis (C) cannot be used to outperform the market.

The Weak Form of the Efficient Market Hypothesis Asserts That