A Finding That _________ Would Provide Evidence Against the Semistrong

question 58

Multiple Choice

A finding that _________ would provide evidence against the semistrong form of the efficient-market theory.

• A) low P/E stocks tend to have positive abnormal returns
• B) trend analysis is worthless in determining stock prices
• C) one can consistently outperform the market by adopting the contrarian approach exemplified by the reversals phenomenon
• D) low P/E stocks tend to have positive abnormal returns and trend analysis is worthless in determining stock prices
• E) low P/E stocks tend to have positive abnormal returns and one can consistently outperform the market by adopting the contrarian approach exemplified by the reversals phenomenon