For technical trading rules to generate returns that are superior to a buy-and-hold strategy,net of transaction costs,the market would have to be
A) Rising.
B) Falling.
C) Inefficient.
D) Overvalued.
E) Undervalued.

Question

Quizplus · Accepted Answer

Technical trading rules rely on identifying inefficiencies in the market and taking advantage of them to generate profits. In an efficient market, where prices reflect all available information, there are no such inefficiencies to be exploited. Therefore, for technical trading rules to be effective, the market would have to be inefficient.

For Technical Trading Rules to Generate Returns That Are Superior