The form of market efficiency in which stock current prices reflect the volume information and historic prices of company is classified as ____________?
Correct answer: A. weak form of market efficiency
- A. weak form of market efficiency
- B. strong form of market efficiency
- C. semi-strong form market efficiency
- D. expensive form market efficiencyAccounting & Auditing
Explanation
Weak-form efficiency says current stock prices already reflect historical prices and trading-volume information, so technical analysis cannot consistently earn excess returns. Semi-strong form additionally includes all publicly available information.
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About Business Finance
Business finance explains how organisations plan, obtain and use money while balancing risk, return and liquidity. Topics include financial statements, time value of money, budgeting, working capital, capital structure, sources of finance, investment appraisal and cost of capital. Capital budgeting evaluates long-term projects, whereas working capital manages day-to-day operations.
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