Mr April has been left 30,000 which he plans to invest on the Stock Exchange in order to have a source of capital should he decide to start his own business in a few years time. A friend of his who works in the City of London has told him that the London Stock Exchange shows strong form market efficiency.

If this is the case, which of the following investment strategies should Mr April follow?

Select one:

a. Study the company reports in the press and try to spot under-valued shares in which to invest.

b. Invest in two or three blue chip companies and hold the shares for as long as possible

c. Build up a good spread of shares in different industry sectors

d. Study the company reports in press and try to spot strongly growing companies in which to invest