The Semistrong-Form of the Efficient Market Hypothesis Implies That ________

question 28

Multiple Choice

The semistrong-form of the efficient market hypothesis implies that ________ generate abnormal returns and ________ generate abnormal returns.

• A) technical analysis cannot; fundamental analysis can
• B) technical analysis can; fundamental analysis can
• C) technical analysis can; fundamental analysis cannot
• D) technical analysis cannot; fundamental analysis cannot

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Definitions:

Perspective

An attitude towards or way of regarding something; a point of view.

Imagine

The ability to form new ideas, images, or concepts not present to the senses or to think creatively about something.

Someone Else's

Pertaining to or belonging to another person.

Competitive

Characterized by or involving competition; having a strong desire to win or be the best at something.