CFA Practice Question

There are 275 practice questions for this study session.

CFA Practice Question

Technical analysts assume the markets are ______ while fundamental analysts assume the markets are ______.
A. weak-form efficient; weak-form efficient
B. weak-form inefficient; semi-strong-form efficient
C. weak-form inefficient; semi-strong-form inefficient
Explanation: Technical analysts use past prices and volume to predict future prices. This practice goes against the weak-form efficient EMH. Fundamental analysts use publicly available information to estimate a security's intrinsic value to determine if the security is mispriced. This goes against the semi-strong-form efficient EMH.

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