Question

you have discovered, from looking at charts of past stock prices, that if you buy just after a stock price has declined for three consecutive days, and then sell two days later, you make a profit every time. this means that of market efficiency does not hold question 4 options: the semi-strong form the semi-weak form the weak form the strong form the tsx

Answer 1

The subject of this question is Business and the grade level is College. The student is asking about the different forms of market efficiency and their relevance to a strategy of buying stocks after a decline and selling them two days later to make a profit. The correct answer is the semi-strong form of market efficiency.

Step-by-step explanation:

The subject of this question is Business and the grade level is College.

The concept being addressed in this question is the efficiency of the stock market. The student is asking about the different forms of market efficiency, specifically in relation to a strategy of buying stocks after a decline and selling them two days later to consistently make a profit. The correct answer is the semi-strong form of market efficiency, which states that all publicly available information is already reflected in the stock price.

In reality, market efficiency does not hold, and it is difficult to consistently beat the market. Even for professional investors, the odds of outperforming the market average are not very good. Trying to predict future stock winners is risky and unlikely to lead to substantial profits.