If markets are semi-strong efficient, which of the following situations is most likely to yield abnormal returns?

1. Analyzing a company’s earning report

2. Identifying a pattern in a company’s historical stock price

3. Obtaining insider information

4. Following the advice of your stockbroker’s newsletter

Which of the following statements about informational efficiency is NOT true?

1. In an informationally efficient market, investors should expect to earn a high rate of return

2. A market is said to be strong form efficient if current prices reflect all available information, both public and private

3. Strong form informational efficiency encompasses semi-strong form informational efficiency

4. An efficient market is important to the corporate executive who uses market value as a measure of management performance