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The weak form of the efficient market theory contends thatA) past price performance is useless in predicting future price movements.B) past performance can help determine the general direction of future price movements.C) any publicly available information is useless in predicting future price movements.D) price movements are not random but follow a general trend over a period of time.

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Answer: B

Explanation: Trend analysis is a technique used in technical analysis that attempts to predict the future stock price movements based on recently observed trend data. Trend analysis is based on the idea that what has happened in the past gives traders an idea of what will happen in the future. Often, the stock price of the companies in the same industry will move in tandem with each other. This is because market conditions generally affect the companies in the same industry the same way. But sometimes, the stock price of a company will benefit from a piece of bad news for its competitor if the companies are competing for the same market.Many factors can cause the price of a stock to rise or fall – from specific news about a company’s earnings to a change in how investors feel about the stock market in general.

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