The _________ of the efficient market hypothesis suggests that there is little or nothing to be gained from studying past stock price trends.
A)weak form
B)semi-strong form
C)strong form
D)semi-weak form

Question

Quizplus · Accepted Answer

The weak form of the efficient market hypothesis suggests that there is no relationship between past and future prices of securities. They are presumed to be independent over time. Because the efficient market hypothesis maintains that current prices reflect all available information, and information travels in a random fashion, it is assumed that there is little or nothing to be gained from studying past stock prices. If the weak form is true, then technical analysis doesn't work.

The _________ of the Efficient Market Hypothesis Suggests That There