BKM Ch$8$ problem $($Connect$/$Problem Sets$)11($modified$)$ and $22$

Evaluate each of the following in terms of how it contradicts $($or doesn't contradict$)$ the proposition that the

stock market is semi$-$strong efficient.

a$)$ Over $25\%$ of mutual funds outperform the market in a typical year.

b$)$ Insiders earn abnormally high trading profits.

c$)$ Most Januaries, the stock market has a large positive return.

Good News, Inc. just announced an increase in its annual earnings, yet its stock price fell. Could there be a

rational explanation for this phenomenon? Explain your answer.