Which of the following phenomena would be either consistent with or a violation of the efficient market hypothesis? Explain briefly.
Â a. Nearly half of all professionally managed mutual funds are able to outperform the S&P 500 in a typical year.
Â b. Money managers that outperform the market (on a risk-adjusted basis) in one year are likely to outperform in the following year.
Â c. Stock prices tend to be predictably more volatile in January than in other months.
Â d. Stock prices of companies that announce increased earnings in January tend to outperform the market in February.
Â e. Stocks that perform well in one week perform poorly in the following week.