Explanation

In a semi-strong-form efficient market, all publicly available information is already reflected in security prices. This means:

1. Fundamental analysis cannot generate consistent abnormal returns (Option A is incorrect) because all public information is already incorporated into prices.
2. Technical analysis (Option C) is also ineffective in semi-strong-form efficient markets, as it relies on historical price and volume patterns.
3. Fundamental analysis (Option B) still has value in helping market participants understand the value implications of information. While it won't generate abnormal returns, it helps investors understand what information means for company valuation and makes markets more efficient by ensuring proper interpretation of information.

Key Concept: In semi-strong-form efficiency:

• Weak-form: Past price/volume data is incorporated (technical analysis ineffective)
• Semi-strong-form: All public information is incorporated (fundamental analysis can't generate abnormal returns but helps understand information)
• Strong-form: All information (public and private) is incorporated (no analysis can generate abnormal returns)

Therefore, fundamental analysis in semi-strong-form efficient markets serves an important educational and interpretive function, helping participants understand how information affects company value, even though it cannot be used to consistently beat the market.