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Basic Question 9 of 14
The semi-strong form of market efficiency is inconsistent with which of the following investment strategies?
II. Buying stocks with a low price/earnings ratio
III. Buying stocks with above-average projected earnings growth
I. Increasing a portfolio's allocation to stocks following a down year in the stock market
II. Buying stocks with a low price/earnings ratio
III. Buying stocks with above-average projected earnings growth
User Contributed Comments 3
| User | Comment |
|---|---|
| azramirza | Can someone highlight this?.? |
| viruss | you cannot earn abnormal-risk adjusted returns using fundamental analysis in a semi-strong MEH ... |
| johntan1979 | So I suppose that answer I being correct implies that EMH do not believe in market correction at all? |
I just wanted to share the good news that I passed CFA Level I!!! Thank you for your help - I think the online question bank helped cut the clutter and made a positive difference.
Edward Liu
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® 2024 Level I Curriculum, Volume 3, Module 3.