You believe you have found a trading strategy that could make significant profits. It requires looking at analyst forecasts and purchasing stock where there has been an upgrade in the recommendation and selling shares where there has been a downgrade in the recommendation. a. Describe which form the Efficient Market Hypothesis will be viola ed if you are able to make significant profits from your trading strategy in the future. b. List three factors that you may be overlooking in assessing the profitability of your trading strategy.

Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
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You believe you have found a trading strategy that could make significant profits. It requires looking at analyst forecasts and purchasing stock where there
has been an upgrade in the recommendation and selling shares where there has been a downgrade in the recommendation.
a. Describe which form the Efficient Market Hypothesis will be viola ed if you are able to make significant profits from your trading strategy in the future.
b. List three factors that you may be overlooking in assessing the profitability of your trading strategy.

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