alleryStart learning →If markets are only weak-form efficient, which method is useless for abnormal profits?
ACharting past prices
BFundamental analysis
CTrading on inside tips
DReading annual reports
Answer & Solution
Correct answer: A. Charting past prices
Weak form means past prices are already reflected, so charting past prices cannot produce abnormal returns, while public and private data may still help.
Keep practising Security Analysis
Browse all Security Analysis questions for CA Final, or explore more Strategicfinancialmanagement topics.
Related questions
Investment strategies such as momentum trading seek to exploitThe Fama-French 3 factor model includes a size factor calledSmall neglected stocks and value stocks earning abnormally high returns are examples ofBehavioral economists attribute market imperfections toWho argued in 1945 that markets are the most effective way of aggregating dispersed informWhich French mathematician's 1900 thesis The Theory of Speculation anticipated market effiThe problem that market efficiency can never be tested without also testing a risk model iStrong-form efficiency tests regard which type of information?