Determine whether each of the following phenomena is consistent or inconsistent with the

efficient market hypothesis and justify your answer:

Nearly half of all professionally managed mutual funds are able to outperform the

$S$&$\frac{P}{T}Sx$ Composite in a typical year.

Money managers that outperform the market $($on a risk$-$adjusted basis$)$ in one year are

likely to outperform it in the following year.

Stock prices tend to be predictably more volatile in January than in other months.

Stock prices of companies that announce increased earnings in January tend to outper$-$

form the market in February.