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6. The following four observations were made about prices and/or returns: 1. The annualized market return on perfectly sunny days in New York City is

6. The following four observations were made about prices and/or returns: 1. The annualized market return on perfectly sunny days in New York City is much higher than on perfectly cloudy days. II. A company's stock price dropped sharply on the day it issued a warning that upcoming earnings would likely be lower than previously expected. III. A company's stock price increased sharply on the day it was announced that they were a strong candidate to soon be taken over by a stronger company. IV. Trader S consistently earned positive abnormal returns when using a momentum strategy that relied upon investing in stocks that had outperformed the S&P 500 index the previous year. Determine which two of the four trends described above are consistent with the efficient markets hypothesis (EMH): a. I and II b. I and III c. II and III d. II and IV e. III and IV

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