You Are Reading the Most Recent Issue of the Wall

Multiple Choice

You are reading the most recent issue of the Wall Street Reporter and Review and learn of a mutual fund manager who has outperformed the market over the past five years by at least 6 percent per year. Which of the following would make it difficult to argue this shows the stock market is not efficient?
I. The dumb luck problem.
II. The data snooping problem.
III. The risk-adjustment problem.
IV. The relevant information problem.

A) I and III only
B) I and II only
C) II and IV only
D) I, II, and III only
E) I, II, and IV only