Seeing is believing!

Before you order, simply sign up for a free user account and in seconds you'll be experiencing the best in CFA exam preparation.

Basic Question 1 of 14

Technical analysts refer primarily to charts when making investment decisions since they feel that ______

A. news is too general to impact individual stocks.
B. news is a determining factor in beta.
C. news is discounted into the price.

User Contributed Comments 3

User Comment
babs but that implies for the fundamentalists and weakform EMH?
viannie I thought this implies strong form of EMH...since strong form = no news is new enough to alter price of stock such that someone can arbitrage from it. News in the market is disseminated evenly to everyone prices of stock won't change drastically
viannie Babs, you are right. Ignore my 1st comment. Just read textbook ;)
Fundamentalist = strong form of EMH
Technical analyst = weak form of EMH therefore, tio them stock prices do not change drastically but persist over a trend
You need to log in first to add your comment.
I am happy to say that I passed! Your study notes certainly helped prepare me for what was the most difficult exam I had ever taken.
Andrea Schildbach

Andrea Schildbach

Learning Outcome Statements

describe and interpret different types of technical analysis charts;

CFA® 2024 Level I Curriculum, Volume 6, Module 67.