Most Studies of Stock Market Efficiency Suggest That the Stock

Multiple Choice

Most studies of stock market efficiency suggest that the stock market is highly efficient in the weak form and reasonably efficient in the semistrong form. Based on these findings which of the following statements are correct?

A) Information you read in The Wall Street Journal today cannot be used to select stocks that will consistently beat the market.
B) The stock price for a company has been increasing for the past 6 months. Based on this information it must be true that the stock price will also increase during the current month.
C) Information disclosed in companies' most recent annual reports can be used to consistently beat the market.
D) Statements a and c are correct.
E) All of the statements above are correct.