Which Group of Investors Is Capable of Earning Consistent,superior Profits

question 105

Multiple Choice

Which group of investors is capable of earning consistent,superior profits if financial markets are strong-form efficient?

• A) Only technical analysts will be able to profit.
• B) Only fundamental analysts will be able to profit.
• C) Only inside traders will be able to profit.
• D) No one will be capable of sustained, superior profits.

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Definitions:

Percentage-Of-Completion Method

An accounting technique that recognizes revenue and expenses related to long-term projects as a percentage of the work completed during the period.

Cumulative Pretax Income

The total pre-tax income earned by a company over a specified period, before any taxes are deducted.

Useful Life

The period over which an asset is expected to be usable by an entity, affecting its depreciation or amortization schedules.

Revised Estimated

An updated forecast or projection based on new information or a more accurate assessment.