CFA® Level 1: CFA® Level 1 Exam - Least Likely Statements by Mikal Cosce

Mikal Cosce's Disagreement with Statements on Technical Analysis

Prev Question Next Question

Question

Mikal Cosce uses technical analysis to determine his trading behavior. Cosce would be least likely to agree with which of the following statements?

Answers

A. He supports the weak form of the efficient market hypothesis.

B. Stock prices move in trends, and these trends persist.

C. Technical analysis tells him when to buy.

D. He does not have to rely on accounting information. A

Show Answer

Explanations

Click on the arrows to vote for the correct answer

A. B. C. D.

Explanation

The weak form of the efficient market hypothesis (EMH) refutes technical trading. The tests for the weak form of the EMH indicate that after incorporating trading costs, simple trading rules cannot generate positive, consistent, abnormal returns. The other statements are true.

Prev Question Next Question