Vidyalelo
Commerce · Q176

Financial Management

Graduate and Post Graduate · Commerce · question 176

Q176

The weak form of the EMH is supported if successive price changes over time are________.

A.
independent of each other
Answer
B.
negative
C.
positive
D.
lagged

Answer: Option A

Solution

Answer: Option A
Solution:
The weak form of the EMH is supported if successive price changes over time are independent of each other. The efficient-market hypothesis (EMH) is a theory in financial economics that states that asset prices fully reflect all available information.