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Assume that markets are semi strong-form efficient. Which of the following statement(s) is most correct? An investor cannot earn abnormal return from possessing inside information.

Assume that markets are semi strong-form efficient. Which of the following statement(s) is most correct?

  1. An investor cannot earn abnormal return from possessing inside information.
  2. Fundamental analysis cannot be exploited to earn abnormal returns.
  3. Past stock prices and trading volume can not be successfully used to forecast future stock returns.
  4. Options B and C are correct.
  5. None of the answers above is correct.

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