If you observed one of the following phenomenon, which one would give evidence a

Question

If you observed one of the following phenomenon, which one would give evidence against the semi-strong form of the efficient market hypothesis?

the managers of mutual funds do not make superior returns on average

Low market to book (M/B) stocks generally have positive abnormal returns

in any year, approximately half of professional money managers outperform the market

you are not able to make above-normal profits by buying or selling stocks once they have made an announcement of higher than expected sales

Explanation / Answer

you are not able to make above-normal profits by buying or selling stocks once they have made an announcement of higher than expected sales

This is because you are not able to profit from public information which is the case for semi strong efficiency

Related Questions

Navigate

• Browse (All)
• Browse I
• Subjects

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.