Which of the following statements regarding the efficient market hypothesis is NOT accurate? Select one: a....
Which of the following statements regarding the efficient market hypothesis is NOT accurate?
Select one:
a. The strong form state prices reflect all information, including public and private
b. Semi strong form Implies that fundamental analysis will not lead to abnormal returns
c. If the market is weak form efficient, then investors can earn abnormal returns by trading on market information
d. Strong form Implies that technical analysis will not lead to abnormal returns
e. All of the answers are correct
Homework Answers
Answer:
First two statement is correct about efficient market hypothesis is correct.
Further,If the market is weak form efficient, then investors cannot earn abnormal returns by trading on market information.Thus this statement is incorrect.
Statement d is also correct aboutefficient market hypothesis.
Thus correct answer is Option C
Add Answer to:
Which of the following statements regarding the efficient market
hypothesis is NOT accurate?
Select one:
a....
1. Which of the following statements regarding the efficient market hypothesis (EMH) is incorrect? A)...
1. Which of the following statements regarding the efficient market hypothesis (EMH) is incorrect? A) An efficient market is a perfect market where you cannot make large profits. B) If the market is efficient in its strong form, it reflects all available, public and private, information. The semi-strong form efficiency means that market prices reflect all publicly available information. A market that only reflects the past price and volume information is a weak-form efficient market.
An efficient market hypothesis states in which all public or private information is reflected in current...
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r the following questions on cfficient market hypothesis (EMIH) If the markct is weak-form efficient, explain whether investors can use (a) publicly available information to make abnormal returns. (b) If the market is strong-form efficient, explain whether investors can use fundamental analysis to generate abnormal returns. c) A famous cconomist just announced in the newspapers his findings that the expansion is over and the Hong Kong economy is again entering a recession. Assume the Hong Kong stock market is efficient....
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