The weak form of the efficient market hypothesis contradicts
A) technical analysis,but supports fundamental analysis as valid
B) fundamental analysis,but supports technical analysis as valid
C) both fundamental analysis and technical analysis
D) technical analysis,but is silent on the possibility of successful fundamental analysis.
E) none of these.

Question

Quizplus · Accepted Answer

The weak form of the efficient market hypothesis suggests that all past market prices and data are already reflected in the current market price, which means that technical analysis is not helpful in predicting future prices. However, it is silent on the possibility of successful fundamental analysis, which involves analyzing a company's financial and economic data to identify undervalued or overvalued stocks. Therefore, it doesn't contradict fundamental analysis but contradicts technical analysis.

The Weak Form of the Efficient Market Hypothesis Contradicts