You discover that if you purchase a stock after it has declined for three days in a row you will make a profit. If this is true, the market is not __________ -form efficient.
A) weak
B) semistrong
C) technical
D) strong
E) semiweak

Question

Quizplus · Accepted Answer

If you can consistently make a profit by using past price patterns (like buying after a three-day decline), it indicates that the market is not weak-form efficient, as weak-form efficiency suggests that past price information is already reflected in stock prices and cannot be used to achieve consistent profits.

You Discover That If You Purchase a Stock After It