Problem: Which is correct?
1) If a market is weak-form efficient, this implies that all public information is rapidly incorporated into market prices.
2) If a market is strong-form efficient, this implies that the returns on a firms's bonds and stocks should be identical.
3) If your uncle earned a return higher than the overall stock market last year, this is evidence that the stock market is inefficient.
4) If a market is weak-form efficient, this implies that analyzing its past price history will not enable one to earn an above-normal rate of return on the stock in the future.
5) If a market is strong-form efficient, this implies that all available information is rapidly incorporated into market prices;; however, superior returns can consistently be earned on a stock through lots of hard work. Few experts believe that this condition actually exists.