no studies of stock market efficiency suggests that the stock market is highly efficient in the week for and reasonably efficient in the semi strong form. Assuming these findings are correct, which of the following statements is correct?
even if you apply financial analysis properly, you cannot use information provided, and companies annual reports to earn above average returns.
you have been tracking a stock price over the past 12 months and new note that this particular stock has tended to rise sharply immediately after has fallen for three days. However, you cannot use this information to devise a trading strategy that will help you beat the market.
information you read in the News can be used to select stocks that are likely to produce above average rates of return.
even if you possess insider information, you cannot use this information to earn above average returns because such information will already be reflected in stock prices.