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ecent research has identified a pattern where stocks with names beginning with the letter ' A ' consistently outperform the market. Which of the following
ecent research has identified a pattern where stocks with names beginning with the letter A consistently outperform the market. Which of the following statements best aligns with the Efficient Market Hypothesis EMH in response to this finding?
A
This pattern proves that markets are inefficient, and investors should immediately adopt a strategy of buying A stocks.
B
The EMH predicts that such patterns will regularly occur in efficient markets, providing opportunities for consistent abovemarket returns.
C
This anomaly likely results from data mining or methodological biases, and would disappear under further scrutiny or attempts to exploit it
D
The EMH must be rejected as it cannot explain such a clear and persistent anomaly in the market.
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