What does weak form efficiency imply

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1. What does weak form efficiency imply?

1 Past price movement is unrelated to the movement of future prices.

2 Investors cannot earn abnormal profits based on any publicly available information.

3 Abnormal returns will disappear within a trading day. )

4 Price patterns that existed in the past will reappear in the future

5 Portfolio diversification is ineffective as all prices are interrelated.

2. Managers are probably best qualified to predict when

1 their company's stock is undervalued

2 currency exchange rates are most favorable.

3 interest rates are peaking.

4 a firm's stock price is too high

5 market interest rates are at their lowest point.

Reference no: EM131981840

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