Asked by ashok Gadiparthi on Apr 24, 2024
Verified
The efficient market hypothesis:
A) supports the validity of technical analysis but not fundamental analysis.
B) supports the validity of fundamental analysis but not technical analysis.
C) supports the validity of both technical and fundamental analysis.
D) supports the validity of neither technical nor fundamental analysis.
E) is unrelated to the disciplines of fundamental and technical analysis.
Efficient Market Hypothesis
A theory in financial economics that states that asset prices fully reflect all available information, making it impossible to consistently achieve higher returns than the market average.
Fundamental Analysis
A method of evaluating securities by attempting to measure the intrinsic value of a stock through examination of related economic, financial, and other qualitative and quantitative factors.
Technical Analysis
An approach to valuing securities by examining past patterns of price and volume. The technique is based on the idea that such patterns repeat themselves.
- Elucidate the concept of the efficient market hypothesis and its implications for investment approaches.
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Learning Objectives
- Elucidate the concept of the efficient market hypothesis and its implications for investment approaches.
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