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Management · Q629

International Finance and Treasury

Graduate and Post Graduate · Management · question 629

Q629

Form of market efficiency in which stock current prices reflects volume information and historic prices of company is classified as

A.
weak form of market efficiency
Answer
B.
strong form of market efficiency
C.
semi-strong form market efficiency
D.
expensive form market efficiency

Answer: Option A

Solution

Answer: Option A
Solution:
Form of market efficiency in which stock current prices reflects volume information and historic prices of company is classified as weak form of market efficiency. Weak form efficiency states that past prices, historical values and trends can't predict future prices. Weak form efficiency is an element of efficient market hypothesis. Weak form efficiency states that stock prices reflect all current information.