The answer is "e. low p/e stocks tend to have positive abnormal returns and one can consistently outperform the market by adopting the contrarian approach exemplified by the reversals phenomenon".
The Efficient Market Hypothesis (EMH) is a investment theory whereby share costs mirror all data and predictable alpha age is unimaginable. Hypothetically, neither specialized nor essential examination can create hazard balanced overabundance returns, or alpha, reliably and just inside data can result in outsized hazard balanced returns. As per the EMH, stocks dependably exchange at their reasonable incentive on stock trades, making it inconceivable for speculators to either buy underestimated stocks or offer stocks at swelled costs. Thusly, it ought to be difficult to beat the general market through master stock determination or market timing, and the main way a speculator can get higher returns is by acquiring more hazardous investments.