Which of the following statements concerning market efficiency is least accurate?
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A) |
If weak-form market efficiency holds, technical analysis cannot be used to earn abnormal returns over the long-run. | |
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B) |
Tests of the semi-strong form of the EMH require that security returns be risk-adjusted using a market model. | |
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C) |
Market efficiency assumes that individual market participants correctly estimate asset prices. | |
Market efficiency does not assume that individual market participants correctly estimate asset prices, but does assume that their estimates are unbiased. That is, some agents will over-estimate and some will under-estimate, but they will be correct, on average. | 
发表于 2010-4-22 14:11
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