Question

Anderson uses his computer and internet link to chart the movement of his favorite 46 stocks. He buys and sells according to the analysis he does of the price charts on these stocks. If he can generate consistent abnormal returns in this manner then this is a failure of_________

Answer 1

Weak form efficiency.

Step-by-step explanation:

Anderson is keeping eye on his favorite 46 stocks and he buys and sells according to the analysis he does.So on generating consistent abnormal returns then it is considered as a failure of weak form efficiency.

Weak form efficiency is states that the past prices or past trends and values cannot predict future prices.