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Basic Question 0 of 6
Which of the following statements is (are) true if the efficient market hypothesis holds?
B. It implies the market is irrational and prices follow a particular pattern.
C. It implies that prices reflect all available information.
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! |
I am happy to say that I passed! Your study notes certainly helped prepare me for what was the most difficult exam I had ever taken.
Andrea Schildbach
Learning Outcome Statements
describe optimal and target capital structures
CFA® 2025 Level I Curriculum, Volume 2, Module 6.