David Ullom, CFA, states tht stock price reversions over five years are an important component of his investment strategy. State which form of the efficient market hypothesis Ullom’s statement addresses and whether the statement is correct or incorrect. Form Statement A. Weak Correct B. Semistrong Incorrect C. Weak Incorrect D. Semistrong Correct I know it is weak form because he is using trading rules, but how is the statement correct. I thought it was incorrect because it implies that stock prices revert back to some average. Can someone explain. Thanks. Answer is A.
its the assumption of technical analysis…thats what they believe…efficiency or not
Where is this question from? Runs test show no correlation between price/volume history and future performance. The answer should be C.
Technical analysis is not a function of the EMH.
^^ agree with ditchdigger, none of the efficient market hypothesis support tech analysis.
The dreaded volume 2 of schweser. Exam 3 afternoon.
He is refuting weak form in his stock price reversion comment which addresses weak form.