If a market is strong form efficient


Which one of the following statements is true?

A. Mutual funds provide little, if any, benefit to investors.

B. Studies seem to indicate stock markets are semistrong but not strong form efficient.

C. Market studies indicate that stock markets are only weak form efficient.

D. Highly positive serial correlations are indicators of market efficiency.

E. Abnormal returns limited to the announcement date are indicators of market inefficiency.

2. If a market is strong form efficient then:

A. company insiders are the only investors capable of earning an abnormal profit

B. abnormal profits are obtainable by any and all investors

C. technical analysts who sudy past market performance have a martk advantage

D. all investments should have positive NPVs

E. company insiders have no advantage over John Q. Public investor.

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Financial Management: If a market is strong form efficient
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