CFA Practice Question

There are 275 practice questions for this study session.

CFA Practice Question

Which of the following statements is (are) true if the efficient market hypothesis holds?

A. It implies perfect forecasting ability.
B. It implies the market is irrational and prices follow a particular pattern.
C. It implies that prices reflect all available information.
Correct Answer: C

User Contributed Comments 2

User Comment
chenyx EMH does not assume that market participants correctly adjust prices,just that their price adjustments are unbiased
chezyfive I guess this is straight forward enoungh!
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