- CFA Exams
- CFA Level I Exam
- Topic 5. Equity Investments
- Learning Module 3. Market Efficiency
- Subject 2. Forms of Market Efficiency
CFA Practice Question
Technicians believe that which of the following efficient market hypotheses are true?
B. Semi-strong form
C. Strong form
A. Weak form
B. Semi-strong form
C. Strong form
Correct Answer: None of the above
The weak form of the EMH says that you cannot outperform the market using historical price patterns since prices are independent. Technicians do not believe this or any stronger form of the EMH.
User Contributed Comments 7
| User | Comment |
|---|---|
| IvanTG | D. None of the above. ;-) |
| johntan1979 | This is an unfair question that should have been structured as I, II and III, not A, B and C where the answer is not even any of those 3 :( |
| Bududeen | testing whether u really know your "shit" |
| leon121 | D was not an option. |
| ashish100 | this is session 13 and johntan is finally complaining about the answer not being one of the options....... |
| khalifa92 | so you can exploit in any form of market efficiency that's what you're telling me? |
| khalifa92 | think about it logically technicians work is all based on historical data which means they believe the market is inefficient. |