10. A technical analyst using stock charts believes a stock should be trading at $50, a fundamental analyst uses public information to arrive at a fair price of $80, and the company's management believes the stock is worth $60 based on the results of a phase III drug trial. Currently, the stock is trading at $70. If you believe the semi-strong form of market efficiency holds, which of the following actions would make the most sense for you to take with the cash in your brokerage account today: a. After reviewing the stock price chart, you agree with the technical analyst's price target, so you buy the undervalued stock today in order to profit when the price increases b. After reviewing the publicly available financial statements, you agree with the sell-side analyst that the company is overvalued, and you decide to sell the stock to profit when the stock price declines c. After reviewing the publicly available financial statements, you agree with the sell-side analyst that the company is undervalued, so you buy the stock today in order to profit when the price increases d. After calling your sister who works for the company, you learn that clinical trials for the company's phase III drug are not going well; you hold your cash and wait until this information is released to the public e. After calling your sister who works for the company, you learn that clinical trials for the company phase III drug the company produces are not going well; you short the stock today and wait for the news to be released to the public 11. If you believe that you can make profitable investment decisions from analyzing stock charts, you most likely believe in which of the following: a. All stocks' return vs. risk profiles plot on the Security Market Line b. Strong form of market efficiency c. Semi strong form of market efficiency d. Weak form of market efficiency e. None of the above