Which of the following observations would provide evidence against the strong form of efficient market theory?   I) Mutual fund managers do not on average make superior returns.  II) In any year approximately 50% of all pension funds outperform the market.  III) Managers who trade in their own firm's stocks make superior returns   I only   II only   I and II only   III only

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A: The above MCQ are answered below

Market Efficiency

Market efficiency refers to the market's ability to provide investors with all available information about investment options for buying and selling securities. Market efficiency reflects the true value of securities without undervaluing or overvaluing them. When the quality and quantity of information increase, the market becomes more efficient, allowing it to reduce arbitrage and obtain higher market returns from investment. In a well-functioning market, everyone receives all information completely and immediately at no cost. It opens up a plethora of opportunities for investors to access various investment options.