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Are the following statements true? Statement 1: Technical analysts believe that, because stock prices are highly efficient and reflect known information, they can use the

Are the following statements true? Statement 1: Technical analysts believe that, because stock prices are highly efficient and reflect known information, they can use the pattern of stock returns to beat the market. Statement 2: An investor holds a very conservative portfolio invested for retirement, but she takes some extra cash she earned from her year-end bonus and buys gold futures. She appears to be engaging in mental accounting.

  1. A.

    Yes.

    B.

    No. Both are not true.

    C.

    No. Only statement 1 is true.

    D.

    No. Only statement 2 is true.

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