Home › CA Final › strategicfinancialmanagement › Security Analysis › When information arrives sequentially and price …
When information arrives sequentially and price adjusts only with a delay, the resulting price pattern most directly contradicts which efficiency form?
AStrong form alone
BBoth semi-strong and strong forms
CWeak form by allowing trend persistence
DNo form of market efficiency
Answer & Solution
Correct answer: C. Weak form by allowing trend persistence
1. Identify what the question asks: this concept maps to informationdelay (§4.4).
2. Apply the framework or formula relevant to the topic.
3. Eliminate distractors and arrive at the correct option (C).
_Source: ICAI BoS CA Final Paper 2, Ch 4 "Security Analysis"_
Related questions
If a stock's actual PE is 25 and the intrinsic PE based on growth fundamentals is 18, the An analyst projects D1 Rs 2, g 4% perpetually, k 10%. With market price Rs 30, the impliedFiltering rules, technical indicator overlays and continuous price charting are most consiThe Markowitz approach to portfolio construction, while informing equity research, is mostIf a market is strong-form efficient, which strategy can systematically generate alpha?On a relative-strength index oscillator (0-100), a sustained reading above 70 is typicallyAn analyst computes intrinsic PE as (1 − b)/(k − b·ROE). With retention b = 0.4, k = 12%, If anomaly evidence supports stock-price momentum at 6-12 month horizons, it most directly