Asked by Dharmesh Kharel on May 11, 2024

verifed

Verified

A weak form efficiency of market efficiency is considered to hold in well-organized markets.

Weak Form Efficiency

A form of market efficiency where all past trading information is already reflected in stock prices, implying that technical analysis cannot yield consistent excess returns.

Market Efficiency

A concept that describes the extent to which market prices fully reflect all available information, making it impossible to consistently achieve higher-than-normal returns.

Well-Organized Markets

Financial markets that are structured in a manner to ensure transparency, fair trading practices, and efficiency.

  • Comprehend the core ideas of the Efficient Market Hypothesis (EMH) and the distinctions between its types (weak, semi-strong, strong).
verifed

Verified Answer

FA
Fizza AfzalMay 13, 2024
Final Answer :
True
Explanation :
Weak form efficiency, a concept within the Efficient Market Hypothesis, suggests that all past trading information is already reflected in stock prices, and thus, technical analysis cannot be used to achieve superior gains. This is generally considered to hold in well-organized and developed markets where information is quickly and widely disseminated among participants.