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The Big Mountain Mutual Fund is a powerful institutional investor that regular moves prices upward or downward depending on its net position in specific equity

The Big Mountain Mutual Fund is a powerful institutional investor that regular moves prices upward or downward depending on its net position in specific equity securities. Recently, and after substantial due diligence, Big Mountain announced it was short 10 million shares of Galactic Energy, whose price subsequently dropped by 20% overnight.


Which statement regarding Big Mountain is most accurate? The market for Galactic Energy is strong form efficient. Big Mountain's influence on prices is a violation of modern portfolio assumptions. There is a market anomaly being driven by Big Mountain's decisions. Big Mountain's decision to short Galactic's shares suffers from emotional bias.

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