7. Which of the following statements contradicts the semi-strong form eicent hypothesis? A. Mary has been earning abnormal profits for positive earnings surprises. Her strategy has been to purchase these stocks one day aftler the earnings announcement date. ing abnormal profits for years from buying socks that received B. Mike has been making abnormal profits for the last 10 years from nvesting in small stocks. C. After a private meeting with a potential acquirer announc company and made abnormal profits D. Both A and B E. A, B, and C and before the takeover ement was made, the CEO of the target firm purchased stocks in his own e semi-strong form of the efficient market hypothesis states thatmust be reflected in the current stock price. A. all security price and volume data B. all publicly available information C. all information, including inside information D. all costless information 19. The capital asset pricing model implies that, if the market is efficient and all assets are fairly priced, A. the most efficient strategy (one that yields the highest expected return for any given level of risk) is to identify positive alpha securities. B. investors should buy the Apple stock as everyone loves Apple's products C. the most efficient strategy (one that yields the highest expected return for any given level of risk) is to hold a portfolio consisting of the risk free asset and the market portfolio D. investors should not invest in the market portfolio as it is too risky