Question: PLEASE HELP WILL RATE Question 3 1 pts Which of the following most appears to contradict the proposition that the stock market is strong-form efficient
PLEASE HELP WILL RATE
Question 3 1 pts Which of the following most appears to contradict the proposition that the stock market is strong-form efficient (i.e., which of the following statements indicates that the stock market is not strong-form efficient)? 1. Insiders earn abnormal trading profits. 2. Over 25% of mutual funds outperform the market on average. 3. Low P/E ratio stocks earn higher average risk-adjusted returns than high P/E ratio stocks. 4. Every January, the stock market earns above normal returns, especially for small firm stocks. 5. Small firm stocks tend to earn higher risk-adjusted returns than large firm stocks. 0 1 5 4 2
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