Which statement about capital market research and financial statement analysis is correct?

Question

Quizplus · Accepted Answer

Analysts who rely on financial statement analysis typically assume that share markets are inefficient. This is because if the markets were efficient, all relevant information would already be incorporated into the stock price, making it difficult for analysts to identify undervalued or overvalued stocks. However, there is still some debate among researchers as to the efficiency of the market, and some believe that financial analysis can still provide valuable insights to investors even in an efficient market.

Which Statement About Capital Market Research and Financial Statement Analysis