If securities markets are semi-strong-form efficient, the most appropriate role of a portfolio manager is to: invest by analyzing publicly available information to consistently generate abnormal returns. manage portfolios with appropriate diversification and asset allocation, taking into consideration investor preferences. exploit appropriate trading rules and serial correlations for achieving excess returns.

Which of the following statements best reflects a price-taking firm? price-taking firms maximize profits by charging a price above marginal cost. the firm can sell only a limited amount of output at the market price before the market price will fall. if the firm were to charge more than the going price, it would sell none of its goods. the firm has an incentive to charge less than the market price to earn higher revenue.