Jane Wong has developed a technical trading rule that has consistently made a risk-adjusted return of...
Jane Wong has developed a technical trading rule that has consistently made a risk-adjusted return of 15% per month for the past 10 years. This is evidence of:
A) semi-strong form efficiency.
B) semi-strong form inefficiency
C) weak form efficiency
D) weak form inefficiency
Homework Answers
The weak form of efficiency indicates that past price can not be used to generate excess return from the market, the study of price pattern is a part of technical analysis. Since Jane has been able to generate excess return from the market for the past few years by using technical analysis then this evidence is against the weak form of efficiency.
Hence the correct answer is
d) weak form of inefficiency
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