CFA Practice Question

There are 275 practice questions for this study session.

CFA Practice Question

In an efficient market, fundamental analysis most likely requires that the analyst must ______
A. do a superior job of estimating the relevant variables and predict earnings surprises.
B. use trading rules for detecting the price movements that lead to new equilibrium prices.
C. extrapolate historical data to estimate future values and make investment decisions.
Explanation: To take advantage of the long-run price movements in an efficient capital market the analyst must do a superior job of estimating the relevant variables and predict earnings surprises.

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