Assume That Markets Are Semistrong Efficient,but Not Strong-Form Efficient

question 30

Multiple Choice

Assume that markets are semistrong efficient,but not strong-form efficient.Which of the following statements is correct?

• A)Each common stock has an expected return equal to that of the overall market.
• B)Investors may be able to earn returns above those predicted by the SML if they have access to information that has not been publicly revealed.
• C)Investors can expect to earn returns above those predicted by the SML if they have access to public information.
• D)Investors should expect to earn more than the returns that are predicted by the SML, because if they do not, they should not invest in the stock market.