Which of the following are ineffective strategies for producing excess returns if the market is strong-form efficient?
I. graphing past prices searching for patterns
II. developing strategic relationships to gain pertinent inside information
III. studying the latest analyst's reports
IV. analyzing a firm's financial statements
A) I and III only
B) I and IV only
C) I, II, and III only
D) II, III, and IV only
E) I, II, III, and IV

Question

Quizplus · Accepted Answer

In a strong-form efficient market, all information, including public, private (insider information), and historical prices, is already reflected in stock prices. Therefore, none of the strategies listed (I. graphing past prices, II. developing strategic relationships for inside information, III. studying analyst reports, IV. analyzing financial statements) would be effective in producing excess returns.

Which of the Following Are Ineffective Strategies for Producing Excess