Ann uses two approaches to trading stocks. first, she trades on what she believes is a repetitive pattern as seen in dotson co's historical prices. secondly, she analyzes the financial statements of the allen co. to compute changes in the return on equity as a predictor of future stock prices for that firm. she trades based on both strategies. ann earns excess profits on her return on equity strategy but not on her historical prices strategy. this suggests that the market is at least efficient but < efficient.