The implications of stock market efficiency for fundamental analysis indicates that using the top-down approach to analyze a firm will yield:
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A) |
superior returns using only past information. |
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B) |
superior returns using past and current information. |
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C) |
superior returns compared to a randomly selected buy-and-hold portfolio of stocks. |
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D) |
returns that are not superior if the analysis only looks at past and current information. |
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Your answer: D was correct!
The evidence is that fundamental analysis does not lead to superior returns using the top-down approach if the analyst uses only past and current information. The analyst's job has to be directed towards doing a superior job of estimating the variables that cause long-run trends in realized returns. | 
发表于 2006-4-27 14:50
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