All the top analysts who follow Purple Whale Foodstuffs Inc.$\text{'}$s stock think that the firm's stock price for the last three months should have been right around $$55$ per share based on the available risk and return data. However, buy and sell orders have been dramatically fluctuating around the price of $$55$ per share over the last three months. It would be reasonable to consider the price of $$55$ per share as the firm's

Read the following statement, and use its information to determine which of the following statements is most accurate.

Nazim is a stock analyst who is looking to invest in small companies that will ideally become large, successful companies. The types of companies that he is considering have few analysts following them.

Nazim can maximize his return by identifying the companies in this market segment that are potentially undervalued and investing in only them, because he is dealing with a relatively inefficient market.

Nazim can maximize his return by diversifying his investment across all companies in this market segment, because the stock market is a highly efficient market. It would be a waste of time and money to try to pick individual companies that are currently undervalued.