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.