What does weak form efficiency imply? Multiple Choice 0 Portfolio diversification is ineffective as all prices are interrelated. 0 Past price movement is unrelated to the movement of future prices. 0 Abnormal returns will disappear within a trading day. 0 Price patterns that existed in the past will reappear in the future. Price patter 0 A stock with a highly positive serial correlation in the past will maintain that correlation in the future. Serial correlation: Multiple Choice indicates a reversal in the direction of returns when the coefficient is positive. involves only one security. indicates a tendency toward reversal when its coefficient is positive. Oo oo measures the cumulative difference between the returns on two similar securities. measures the current relationship between the returns on two securities. The cause of the October 19, 1987 stock market crash: Multiple Choice O is related to actions takene is related to actions taken on that date by the Federal Reserve Bank. o O has been identified as the result of major internet company announcements on the prior day. has been identince o resulted from losses in international markets. o has yet to be determined. o was the result of regulatory changes that were implemented that morning. o Which one of these terms is used to describe a market where investors draw conclusions from insufficient data? Multiple Choice Representativeness Synergy Conservatism Oo oo Arbitrage Arbitrage Independent deviations from rationality