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The semistrong form of the efficient market hypothesis implies that ____________ generate abnormal returns and ____________ generate abnormal returns.A. technical analysis cannot; fundamental analysis canB. technical analysis can; fundamental analysis canC. technical analysis can; fundamental analysis cannotD. technical analysis cannot; fundamental analysis cannot

Answer :

Answer:

The correct answer is letter "D": technical analysis cannot; fundamental analysis cannot.

Explanation:

In the Efficiency Market Hypothesis (EMH), the semi-strong efficiency exposes that neither technical or fundamental analysis is useful in order to predict price action movements. It establishes that only information that is publicly spread may determine the highs or lows in a stock price.

In that sense, according to the semi-strong efficiency hypothesis, technical and fundamental analysis cannot generate any above-normal return out of a stock price movement.

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