Q270
In the weekly efficient market, the stock price reflects.
A.
the company's financial performance
B.
the past price of the scrip
C.
the demand for the scrip
D.
the past price and traded volumes
AnswerAnswer: Option D
Solution
Answer: Option D
Solution:
In the weekly efficient market, the stock price reflects the past price and traded volumes. Weak form efficiency claims that past price movements, volume and earnings data do not affect a stock’s price and can’t be used to predict its future direction. Weak form efficiency is one of the three different degrees of efficient market hypothesis (EMH).