CFA Practice Question

There are 275 practice questions for this study session.

CFA Practice Question

Overall support for the weak form of the EMH is ______

A. very strong and suggests that increased risk-adjusted returns are unlikely using historical price information to make trading decisions.
B. weak because several studies show that it is possible to form a number of profitable trading rules.
C. weak, based on the presence of P/E ratio and book value anomalies
D. weak, based on the presence of several calendar anomalies.
Correct Answer: A

The weakform is strongly supported by the research. P/E ratios and calendar anomalies are not relevant to weak-form tests.

User Contributed Comments 1

User Comment
ciji Weak form EMH is strongly supported.
Stong form EMH is weakly supported.
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