CFA Practice Question

There are 275 practice questions for this study session.

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 ______.

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
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