Which of the following phenomena would be either consistent with or a violation of the efficient market

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Which of the following phenomena would be either consistent with or a violation of the efficient market hypothesis? Explain briefly.
a. Nearly half of all professionally managed mutual funds are able to outperform the S&P 500 in a typical year.
b. Money managers that outperform the market (on a risk-adjusted basis) in one year are likely to outperform in the following year.
c. Stock prices tend to be predictably more volatile in January than in other months.
d. Stock prices of companies that announce increased earnings in January tend to outperform the market in February.
e. Stocks that perform well in one week perform poorly in the following week.

Stocks
Stocks or shares are generally equity instruments that provide the largest source of raising funds in any public or private listed company's. The instruments are issued on a stock exchange from where a large number of general public who are willing...
Mutual Funds
Mutual funds are like a pool of funds gathered by different small investors that have simalar investment perspective about returns on their investments. These funds are managed by professional investment managers who act smartly on behalf of the...
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Investments

ISBN: 9780073530703

9th Edition

Authors: Zvi Bodie, Alex Kane, Alan J. Marcus

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