The semistrong-form of the efficient market hypothesis implies that ________ generate abnormal returns and ________ generate abnormal returns.

A) technical analysis cannot; fundamental analysis can
B) technical analysis can; fundamental analysis can
C) technical analysis can; fundamental analysis cannot
D) technical analysis cannot; fundamental analysis cannot

Semistrong-form

A theory suggesting that stock prices incorporate all publicly available information, including historical data and public news.

Efficient Market Hypothesis

A theory stating that share prices reflect all available information, making it impossible to consistently achieve higher returns.

Technical Analysis

The study of past market data, primarily price and volume, to forecast future price movements without considering the underlying financial condition of the company.