Which one of the following would provide evidence against the semi strong form of the efficient

QUESTION

Which one of the following would provide evidence against the semi strong form of the efficient market theory?
a. About 50% of pension funds outperform the market in any year.
b. All investors have learned to exploit signals about future performance.
c. Trend analysis is worthless in determining stock prices.
d. Low P/E stocks tend to have positive abnormal returns over the long run.
d. Low P/E stocks tend to have positive abnormal returns over the long run. According to the semi strong form of efficient market hypothesis all the publicly available information is reflected in the stock prices. Since the information about the P/E ratio is

ly available the tendency of the low P/E stocks to earn positive abnormal returns over the long runprovide evidence against the semi strong form of the efficient market theory.

ANSWER:

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