Company C: C is quoted fashion retailer. Daniels believes that the current share price of 2.58 undervalues the company significantly, making it a suitable target. He is also interested in Company C as he feels it would have a good fit with his existing fund portfolio and would diversify away some risk.

Which one of the following statements concerning Daniels opinion that Company C is undervalued is true?

Select one:

a. Daniels believes that the stock market is strong form efficient and he has access to secret inside information

b. Daniels believes that the stock market is semi-strong form efficient and he has access to secret inside information

c. Daniels believes that the stock market is semi-strong form efficient and he has analysed financial statements and press releases to form his opinion

d. Daniels believes that the stock market is weak form efficient and he has produced graphs of historic share prices to form his opinion