Which of the following contradicts the proposition that the stock market is semistrong-form efficient?

Multiple Choice

A. Over 25% of mutual funds outperform the market on average.

B. Every January, the stock market earns above-normal returns.

C. Applications of technical trading rules fail to earn abnormal returns.

D. Insiders earn abnormal trading profits.

Assume that a company announces unexpectedly low earnings in a particular quarter. In an efficient market one might expect _____________.

Multiple Choice

A. no abnormal price change before or after the announcement

B. an abnormal price increase immediately after the announcement

C. an abnormal price increase before the announcement

D. an abnormal price decrease after the announcement