The semi-strong 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 semi-strong form of the efficient market hypothesis suggests that all publicly available information, including both past prices (technical analysis) and fundamental data (fundamental analysis), is already reflected in stock prices. Therefore, neither technical nor fundamental analysis can consistently generate abnormal returns.

The Semi-Strong Form of the Efficient Market Hypothesis Implies That