Efficient Market Hypothesis

The EMH implies that fundamental analysis: A) can achieve superior returns by extrapolating historical data B)is inferior to technical analysis because fundamental analysis is not timely C)requires the analyst to predict movements in relevant variables that affect rates of return D)will be successful if transation costs are minimized by focusing on a limited number of large cap stocks.

C…has to do with assumptions of valuation analysis…

definately not B because the weak form dispells technical analysis… I would say C because analysts look at ROE, P/E, P/S, P/B and other variables when using fundamental analysis.

def C

Ans is C…

its C because of process of elimination; other options are way off. : ( i forgot all about EMH and fundamental analysis…

The correct answer is C

It’s not A, B and D … and hence it’s C [Advantages of MCQ’s!!] - Dinesh S