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If a market exhibits semi-strong-form efficiency, fundamental analysis based on published financials would on average:
AFail to deliver risk-adjusted excess returns
BGenerate abnormal returns consistently
COutperform technical analysis by a wide margin
DBeat passive index investing systematically
Answer & Solution
Correct answer: A. Fail to deliver risk-adjusted excess returns
1. Identify what the question asks: this concept maps to semistrongform (§4.5).
2. Apply the framework or formula relevant to the topic.
3. Eliminate distractors and arrive at the correct option (A).
_Source: ICAI BoS CA Final Paper 2, Ch 4 "Security Analysis"_
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