Proposition that the stock market is weakly efficient

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1. Which of the following contradicts the proposition that the stock market is weakly efficient?

An analyst is able to identify mispriced stocks by looking at stock charts.

Mutual funds do not outperform the market on average.

Some investors can earn abnormal profits.

The autocorrelations of stock returns are not significantly different from zero.

2. Which of the following would provide the strongest evidence against the semi-strong form of the efficient market theory?

Fundamental analysis does not help generate abnormal returns.

Technical analysis is worthless in identifying mispriced stocks.

Stock prices response to firms’ earnings announcements gradually.

Mutual fund managers do not beat the market on average.

Reference no: EM131616519

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