CFA Practice Question

There are 221 practice questions for this study session.

CFA Practice Question

If weak form market efficiency holds, then ______

A. technical analysis does not work.
B. technical analysis works.
C. fundamental analysis does not work.
Correct Answer: A

Tests of weak form market efficiency examine whether it is possible to earn superior returns by examining only past price data.

User Contributed Comments 3

User Comment
raution when there is weak form market efficiency then the prices do not adjust quickly giving room for technical analysis.
Weak form efficiency = all the past information is already incorporated into the stock price so there is NO room for technical analysis!
fredpat01 Agreed with Jake;

Weak form efficiency claims that past price movement does not affect stock prices.
You need to log in first to add your comment.