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Filtering rules, technical indicator overlays and continuous price charting are most consistent with which efficiency-violation hypothesis?
AWeak-form efficiency holds; signals add no value
BWeak-form efficiency may be violated; signals add value
CSemi-strong efficiency violated by chart patterns
DStrong-form efficiency confirmed by chart patterns
Answer & Solution
Correct answer: B. Weak-form efficiency may be violated; signals add value
1. Identify what the question asks: this concept maps to technicalefficiency (§4.4).
2. Apply the framework or formula relevant to the topic.
3. Eliminate distractors and arrive at the correct option (B).
_Source: ICAI BoS CA Final Paper 2, Ch 4 "Security Analysis"_
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