$7$

Multiple Choice

$1\mathrm{.}5$ points

Which of the following stock price observations would appear to contradict the weak form of the efficient market hypothesis?

The correlation between the market return one week and the return the following week is zero.

You could have consistently made superior returns by buying stock after a $10\%$ rise in price and selling after a $10\%$ fall.

The awerage rate of return is significantly greater than zero.

You could have consistently made superior returns by forecasting future earnings performance with your new Crystal Ball forecast methodology.

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