If the Market Is Semistrong-Form Efficient,then Which One of the Following

question 21

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 excess profits but fundamental analysts cannot.
• C) Fundamental analysts can earn excess profits but technical analysts cannot.
• D) Both technical and fundamental analysts earn excess profits based on their research.
• E) No answer can be determined as the form of market efficiency is unrelated to abnormal, or excess returns.

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Definitions:

Stress Hormones

Hormones that are released in the body's response to stress, such as cortisol, which can affect various bodily functions.

Serotonin

A neurotransmitter that contributes to feelings of well-being and happiness, also involved in the regulation of mood, appetite, and sleep.

Glucose

The form of sugar that circulates in the blood and provides the major source of energy for body tissues. When its level is low, we feel hunger.

Amygdala

A section of the brain involved in experiencing emotions, particularly fear and pleasure.