Which one of these serial coefficient values is most consistent with weak form market efficiency?
A)-1
B)-.5
C)0
D)+.5
E)+1

Question

Quizplus · Accepted Answer

A serial coefficient value of zero indicates that there is no correlation between past and future returns, which is a basic assumption of weak form market efficiency. Therefore, a coefficient value of zero is the most consistent with weak form market efficiency.

Which One of These Serial Coefficient Values Is Most Consistent