D) E) 6% 11. Consider the following strategy: Buy a stock if its price is 10% below the 200-day moving average, and sell it if its price is 10% above the 200-day moving average. If this trading strategy is profitable after adjustment for risks, then the market is A) B) C) D) inefficient weak-form efficient semi-strong form efficient strong form efficient 12. Consider a strategy that buys low P/E stocks and short-sells high P/E stocks. If t strategy is profitable even after adjustment for risks, then it appears to contradict of efficient market hypothesis. the weak form A) the semi-strong form B) the strong form C) all forms DD