A local mutual fund says it has expertise in identifying stocks that are undervalued  because they are under researched or unpopular. To prove its point, the fund produces evidence that it returns over the past four years was 3%  the return on the market index:

i) What does efficient market hypothesis (EMH) say about undervalued stock? 

ii) Does the fund's evidence contradict the EMH? 

iii. Evaluate the importance of market efficiency to the finance manager.

iv. State and explain five stock market anomalies that you believe provide a profitable trading  strategy.