Use the following statements to answer this question:
I.Strong form efficiency is practically impossible to prove.
II.On average, investors can beat the market using technical analysis.
III.Market efficiency is a myth that does not exist in any of its forms.
A)I, II, and III are correct.
B)I, II, and III are incorrect.
C)I and II are correct and III is incorrect.
D)I is correct, II and III are incorrect.

Question

Quizplus · Accepted Answer

Statement I is correct as strong form efficiency, which assumes all information both public and private is reflected in market prices, is practically impossible to prove. Statement II is incorrect as numerous studies have shown that consistently beating the market using technical analysis is unlikely. Statement III is also incorrect as market efficiency has been observed in various forms and is widely accepted by the academic community.

Use the Following Statements to Answer This Question