If the market is semi-strong form efficient, then technical analysts __________ earn excess returns and fundamental analysts __________ earn excess returns.
A) can; can
B) can; cannot
C) cannot; can
D) cannot; cannot
E) Answers cannot be determined based on the information provided.

Question

Quizplus · Accepted Answer

In a semi-strong form efficient market, all publicly available information is already reflected in stock prices. Therefore, neither technical analysts, who rely on historical price and volume data, nor fundamental analysts, who analyze financial statements and market conditions, can consistently earn excess returns.

If the Market Is Semi-Strong Form Efficient, Then Technical Analysts