If the Market Is Semistrong Form Efficient, Then Which One

question 55

Multiple Choice

If the market is semistrong form efficient, then which one of the following statements is true?

• A)Neither technical nor fundamental analysis leads to abnormal profits.
• B)Technical analysts have the ability to earn abnormal profits but fundamental analysts cannot.
• C)Fundamental analysts can earn abnormal profits but technical analysts cannot.
• D)Both technical and fundamental analysts earn abnormal profits based on their research.
• E)No answer can be determined as the form of market efficiency is unrelated to abnormal returns.

---

Definitions:

Subculture

A distinctive set of ideas, values, and behavior patterns by which a group within a larger society operates, while still sharing common standards with that larger society.

Ethnic Group

A community or population made up of people who share a common cultural background or descent.

Predictable Behavior

Actions or responses that are consistent and can be anticipated based on previous patterns or known characteristics.

Selective Breeding

The human practice of breeding plants or animals for specific genetic traits, aiming to develop or enhance particular phenotypes.