Suppose that 100 separate firms were tested to determine how many of them "beat the market" using a Jensen-type regression, and it is found that 3 fund managers significantly do so. Does this suggest prima facie evidence for stock market inefficiency?
(A)Yes (B)No (C)In order to answer this question, you would need to test every fund manager trading in that market (D)There is insufficient information given in the question to draw a conclusion about market efficiency.
B