Given the efficiency of our financial markets,
A)There is no justification for technical analysts
B)There is no justification for fundamental analysts
C)Both technical and fundamental analysts serve a useful function
D)All investors should index their portfolio

Question

Quizplus · Accepted Answer

While financial markets are efficient, technical and fundamental analysts do serve a useful function. Technical analysts use charts and technical indicators to identify trends and potential trading opportunities, while fundamental analysts analyze financial and economic data to assess the value of a company or asset. Both approaches can provide insights and aid in investment decision-making. However, individual investors may also benefit from indexing their portfolio to minimize fees and take advantage of market returns over the long term.

Given the Efficiency of Our Financial Markets