The semistrong-form of the efficient market hypothesis implies that ________ generate abnormal returns and ________ generate abnormal returns.
A) technical analysis cannot; fundamental analysis can
B) technical analysis can; fundamental analysis can
C) technical analysis can; fundamental analysis cannot
D) technical analysis cannot; fundamental analysis cannot

Question

Quizplus · Accepted Answer

The semistrong-form of the efficient market hypothesis posits that all publicly available information is already reflected in stock prices, meaning neither technical analysis (which uses past price and volume information) nor fundamental analysis (which uses financial statements and other public data) can generate abnormal returns.

The Semistrong-Form of the Efficient Market Hypothesis Implies That ________