Assume That Markets Are Semistrong Efficient, but Not Strong-From Efficient

Multiple Choice

Assume that markets are semistrong efficient, but not strong-from efficient. Which of the following statements is most correct?

A) Each common stock has an expected return equal to that of the overall market.
B) Bonds and stocks have the same expected return.
C) Investors can expect to earn returns above those predicted by the SML if they have access to public information.
D) Investors may be able to earn returns above those predicted by the SML if they have access to information which has not been publicly revealed.
E) Answers b and c are correct.