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:

Job Cost Sheets

Documents that record and summarize the costs associated with a specific job or project, helping in tracking direct materials, direct labor, and overhead.

Job Order Cost System

An accounting method that accumulates costs for each individual job or project, tracking materials, labor, and overhead.

Uniform Products

Products that are identical in quality and performance, manufactured to meet a standard specification.

Cost Accounting

An area of accounting that involves measuring, recording, and reporting product costs.