The following table shows information on three different investment strategies with equivalent systematic risk:
Annualized Data
Strategy Type of Strategy Fees and Expenses Net Return
1 Passive 0% 15%
2 Exploits price patterns 1% 14%
3 Uses fundamental analysis 2%
The return, gross of fees and expenses, that causes Strategy 3 to be most consistent with the strong form of market efficiency is:
A.
18%.
B.
16%.
C.
17%.
Refer the same.