Efficient market hypothesis

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Which of the following would not be consistent with the semi-strong form of the efficient market hypothesis?

1. A few active equity managers consistently outperform the market indices after fees

2. Stocks of companies that are takeover targets tend to rise in price prior to the announcement of the takeover

3. The majority of stocks tend to rise in price over time

4. The market routinely fails to punish stocks of companies that fail to meet consensus earnings' expectations

Reference no: EM133073540

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