Efficient in the weak-form and efficient in semistrong-form

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Assume that the stock market is efficient in the weak-form and efficient in the semistrong-form. If this is correct, which of the following statement is true? Question 16 options: a) Information you read in The Wall Street Journal cannot be used to select stocks that are likely to produce above-average rates of return. b) You have been tracking a stock's price over the past 6 months, and you note that this particular stock has tended to rise sharply immediately after it has fallen for three days. You can use this information to devise a trading strategy that will help you beat the market. c) Even if you possess insider information, you cannot use this information to earn above-average returns because such information will already be reflected in stock prices. d) You notice that a company's stock price always seems to swing back and forth--whenever it falls by 10% or more, it seems to recover and to eventually exceed its former high. Since its price has fallen during the past 2 months, now is a great time to buy it before it takes off again.

Reference no: EM131964189

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