- CFA Exams
- CFA Level I Exam
- Topic 5. Equity Investments
- Learning Module 3. Market Efficiency
- Subject 3. Market Pricing Anomalies
CFA Practice Question
Tests of the semi-strong form of the EMH based on public information beyond price information include all of the following except ______.
B. the use of a 5% trading filter
C. a low book-value strategy
D. a high earnings growth strategy
A. a low price/earnings ratio strategy
B. the use of a 5% trading filter
C. a low book-value strategy
D. a high earnings growth strategy
Correct Answer: B
P/E ratios, book value, and earnings growth are all public non-market data. The filter rule is based on historical prices and thus is not "beyond price information."
User Contributed Comments 7
| User | Comment |
|---|---|
| kalps | Filture rule is used in the weak form |
| accounting | B is for weak form , i think? |
| tagr | Yes. |
| rethan | What is public market data? is it price and volume information? |
| kutta2102 | public is price, volume, company announcements of new products any legal issues etc etc |
| johntan1979 | I know this probably sounds lame, but I got it right because B is the only one without the word strategy :p |
| kondagadu | 5 % filter is part of market trading data , so weak form on hypothesis i guess |