Question: 1. Are the statements below true or false? Explain briefly. a. If the weak form of efficient markets hold, then technical analysis is useless. b.

1. Are the statements below true or false? Explain briefly.

a. If the weak form of efficient markets hold, then technical analysis is useless.

b. An investor discovers that for a certain group of stocks, large positive price changes are always followed by large negative price changes. This finding is a violation of the week form of the efficient market hypothesis.

c. An investor discovers that stock prices change drastically as a result of certain events. This finding indicates that the market is not efficient.

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