Why should I choose AnalystNotes?

AnalystNotes specializes in helping candidates pass. Period.

Basic Question 1 of 14

Which of the following statements is (are) true if the efficient market hypothesis holds?

A. It implies perfect forecasting ability.
B. It implies the market is irrational and prices follow a particular pattern.
C. It implies that prices reflect all available information.

User Contributed Comments 2

User Comment
chenyx EMH does not assume that market participants correctly adjust prices,just that their price adjustments are unbiased
chezyfive I guess this is straight forward enoungh!
You need to log in first to add your comment.
Your review questions and global ranking system were so helpful.
Lina

Lina

Learning Outcome Statements

contrast weak-form, semi-strong-form, and strong-form market efficiency

explain the implications of each form of market efficiency for fundamental analysis, technical analysis, and the choice between active and passive portfolio management

CFA® 2025 Level I Curriculum, Volume 3, Module 3.