A Technical Analyst Teaches You a Trading Rule Called a "Hoo-Yah

question 3

Multiple Choice

A technical analyst teaches you a trading rule called a "Hoo-Yah." This strategy has produced a 15 percent annual return for the past five years, while the market return has been 12 percent. Which of the following is not true?

• A) The return may not be as good as advertised since it is not adjusted for risk
• B) This may be a data snooping problem.
• C) While the trading rule worked in the past, there is no guarantee it will work in the future.
• D) If the trading rule works consistently, it is evidence against semistrong-form market efficiency.
• E) All of the above are true.