The CEO of Angelina Corporation, Sara Brown is meeting with the company's board of directors to discuss efficient capital markets and behavioral challenges and their impact on the company's stock. She explains that if capital markets are efficient, management cannot create value by fooling investors, and market value of stock reflects underlying intrinsic value. She added that stock prices reflect available information. Investors are rational and will analyze the available information and adjust their estimates of stock price in a rational way. Sara gave the following statements about the efficient market hypothesis: Statement 1: Because information is reflected in prices immediately, investors should expect to obtain a normal rate of return. Information reflects so quickly in stock prices that no investor can gain competitive advantage over other investors. Statement 2: Stock prices reflect underlying value. Statement 3: Prices of stocks will only change if new information becomes available. Statement 4: Managers cannot boost stock prices through creative accounting. Statement 5: All shares of stock have the same expected returns