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Basic Question 0 of 6
Which of the following statements is (are) true if the efficient market hypothesis holds?
B. It implies the market is irrational and prices follow a particular pattern.
C. It implies that prices reflect all available information.
A. It implies perfect forecasting ability.
B. It implies the market is irrational and prices follow a particular pattern.
C. It implies that prices reflect all available information.
User Contributed Comments 2
| User | Comment |
|---|---|
| chenyx | EMH does not assume that market participants correctly adjust prices,just that their price adjustments are unbiased |
| chezyfive | I guess this is straight forward enoungh! |
I just wanted to share the good news that I passed CFA Level I!!! Thank you for your help - I think the online question bank helped cut the clutter and made a positive difference.
Edward Liu
Learning Outcome Statements
contrast weak-form, semi-strong-form, and strong-form market efficiency
explain the implications of each form of market efficiency for fundamental analysis, technical analysis, and the choice between active and passive portfolio management
CFA® 2024 Level I Curriculum, Volume 3, Module 3.