At which level of market efficiency does the efficient market hypothesis support the technical analysis approach to future share price determination?
A) Weak-form efficiency
B) Semi-strong form efficiency
C) Strong-form efficiency
D) None of the given answers

Question

Quizplus · Accepted Answer

The efficient market hypothesis (EMH) suggests that all available information is already reflected in stock prices, making it impossible to consistently achieve higher returns. Technical analysis, which uses past market data to predict future price movements, is not supported by any level of market efficiency (weak, semi-strong, or strong) according to the EMH.

At Which Level of Market Efficiency Does the Efficient Market