QUESTION 3 Which of the following statements contradicts the semi-strong form efficient market hypothesis? Mary has not been able to cam positive alphas for years from buying stocks that received positive cumnings surprises. Her strategy has been to purchase these stocks one day after the earnings announcement date. None of the provided statements, O Mike has been making positive alphas for the last 10 years from investing in small stocks. O After a private meeting with a potential acquirer and before the takeover announcement was made, the CEO of the target firm purchied stocks in his own company and made abnormal profits QUESTION 4 po Consider the CAPM. If stock XYZ plots above the security market line, which of the following statements is true? Stock XYZ is underpriced and a trader should hay it, Stock XYZ. is underpriced and a trader should short sell it. Stock XYZ is overpriced and a trader should buy it. Stock XYZ is overpriced and a trader should short sell it. QUESTIONS Consider the CAPM. The risk-free rate is 4%, and the expected return on the market is 1196. What is the expected return tock with a betur.79 4% 8.9%