which form of the efficient market hypothesis (EMH) implies that an investor can achieve positive abnormal returns on average by using technical analysis? a. none b. weak form c. weak form or semistrong form answer is A??? i thought it would be B?
weak form disproves the value of TA. strong form disproves the value of any fundamental analysis or even showing up to work as an investment analyst. semi-strong is in-between, can’t remember specifics off top of my head but says like some value to creating portfolios (rather than stock selection) and some ability to generate abnormal returns in certain anomalies.
Weak form efficient market hypothesis (EMH) implies that an investor CANNOT achieve positive abnormal returns on average by using technical analysis. Answer’s A but I can see why you chose B as the language is kinda vague.
A. Weak-form efficiency states that all information regarding past prices and volume is already reflected in the price of a security. Hence, guess what, technical analysis doesn’t work. It seems you need to focus more on the assumptions of technical analysis because you answered B, which is the exact opposite.