Which of the following statements regarding the efficient market hypothesis is N

Question

Which of the following statements regarding the efficient market hypothesis is NOT accurate?

Select one:

a. If the market is weak form efficient, then investors cannot earn abnormal returns by trading on market information

b. The strong form state prices reflect all information, including public and private

c. Strong form Implies that technical analysis will not lead to abnormal returns

d. Semi strong form Implies that fundamental analysis will not lead to abnormal returns

e. All of the answers are correct

Explanation / Answer

Which of the following statements regarding the efficient market hypothesis is NOT accurate?

a. If the market is weak form efficient, then investors cannot earn abnormal returns by trading on market information

Note :

If the market is weak form efficient, then investors can earn abnormal returns by trading on market information by doing technical analysis or fundamental analysis or insider trading

Strong form efficiency states that the market incorporates any and all pertinent information in the stock price

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