The following statements concerning market efficiency have been made:

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answerhappygod
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The following statements concerning market efficiency have been made:

Post by answerhappygod »

1. Only markets which are strong-form efficient will not be affected by creative accounting or window dressing of accounts.
2. When a market is weak-form efficient, it is possible to predict future share price movements based on past trends of share price movements.
Which of the following combinations (true/false) is correct?
A. Statement 1 = True, Statement 2 = True
B. Statement 1 = True, Statement 2 = False
C. Statement 1 = False, Statement 2 = True
D. Statement 1 = False, Statement 2 = False
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