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Which of the following observations would provide evidence against the semi strong? Form of the efficient market theory? Explain.

a. Mutual fund managers do not on average make superior returns.

b. You cannot make superior profits by buying (or selling) stocks after the announcement of an abnormal rise in dividends.

c. Low P/E stocks tend to have positive abnormal returns.

d. In any year approximately 50% of pension funds outperform the market. Problems 6-12 are taken from past CA exams.

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