LOS c, (Part 1): Explain the implications of stock market efficiency for technical analysis and fundamental analysis.
The conclusion that technical analysis adds no value:
A) |
is not supported by fact. | |
B) |
supports the weak form of the EMH. | |
C) |
neither of these answers are correct. | |
Simple trading rule, autocorrelation and runs tests generally find evidence suggesting that technical analysis based on historical information does not generate significant excess returns.
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