- CFA Exams
- CFA Level I Exam
- Topic 5. Equity Investments
- Learning Module 38. Market Efficiency
- Subject 2. Forms of Market Efficiency
CFA Practice Question
Mr. Boland has discovered from looking at charts of past stock prices that if he buys just after a stock price has declined for three consecutive days, he can make money every time. This is a violation of which of the following?
A. Semi-strong-form market efficiency
B. Strong-form market efficiency
C. Weak-form market efficiency
User Contributed Comments 3
| User | Comment |
|---|---|
| iceluke | not time series analysis, just trading --> so its weak form |
| cahiz84 | It violates Statistical test of independence: Autocorrelation and Run tests |
| rjdelong | It's a play on the 3 black crows candle formation, classic technical analysis... |