Alex Khan has developed a trading strategy where he buys firms with a relatively lox

forward Price/Earnings ratio (uses current stock price relative to expected earring) to

benefit from relatively cheap stock prices. This trading rule has consistently eared a

risk-adjusted return of 15% per month for the past 10 years. This is viclation of. (select

the most correct choice)

1. weak-form market efficiency

2. semi-strong form market efficiency

3. strong form market efficiency

O a.

1 only

O b.

2 only

O c. 3 only

O d. Both 2 and 3

O e

Both 1 and 2