JWing Is FALSE regarding the Efficient Market Hypothesis? ) In general, the Efficient Market Hypothesis says that stock prices very quickly reflect information that is available. If financial markets are weak form efficient, then technical analysts cannot make abnormally good returns, on average, by studying charts of past stock prices and trading volumes. If financial markets are strong form efficient, then insiders with private information about a company would not be able to make abnormally good returns by trading on that information. OThe Efficient Market Hypothesis implies that skilled fundamental analysts can make abnormally good returns by studying a firm's financial statements, suppliers, customers, and the economic conditions. O Evidence suggests that insiders who trade on private information can make abnormally good returns, but it's illegal to do so.
JWing Is FALSE regarding the Efficient Market Hypothesis? ) In general, the Efficient Market Hypothesis says that stock prices very quickly reflect information that is available. If financial markets are weak form efficient, then technical analysts cannot make abnormally good returns, on average, by studying charts of past stock prices and trading volumes. If financial markets are strong form efficient, then insiders with private information about a company would not be able to make abnormally good returns by trading on that information. OThe Efficient Market Hypothesis implies that skilled fundamental analysts can make abnormally good returns by studying a firm's financial statements, suppliers, customers, and the economic conditions. O Evidence suggests that insiders who trade on private information can make abnormally good returns, but it's illegal to do so.
Financial Management: Theory & Practice
16th Edition
ISBN:9781337909730
Author:Brigham
Publisher:Brigham
Chapter25: Portfolio Theory And Asset Pricing Models
Section: Chapter Questions
Problem 11MC
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