Weak form efficiency is best defined as a market where current prices are based on
A)totally rational decisions.
B)historical prices.
C)information known to any person or organization.
D)all publicly available information.
E)irrational decisions by amateur investors.

Question

Quizplus · Accepted Answer

Weak form efficiency, a concept from the Efficient Market Hypothesis, posits that current asset prices already reflect all historical prices and returns information. This implies that past price movements or trends cannot be used to predict future price movements to earn excess returns.

Weak Form Efficiency Is Best Defined as a Market Where