Question

Evidence supporting semistrong-form market efficiency suggests that investors should _________________________.A. rely on technical analysis to select securitiesB. rely on fundamental analysis to select securitiesC. use a passive trading strategy such as purchasing an index fund or an ETFD. select securities by throwing darts at the financial pages of the newspaper

Answer 1

Answer:

Letter C is correct

Explanation:

Passive trading strategy is correct. In the case of an investor-friendly market, the valuation of an investment fund will be ascertained and thus the value of capital gains will be higher. Therefore when investing in an EFTD which is an investment fund that uses benchmarks where the gains are equal to or greater than the index. The investor has the possibility for a specialist to identify and track the best time in the market to make purchases and sales.