Final answer:
Observing higher returns of commercial paper compared to T-bills does not necessarily contradict the Efficient Market Hypothesis (EMH).
Step-by-step explanation:
Suppose you observe that commercial paper returns are generally higher than T-bill returns. This observation alone does not provide evidence against the Efficient Market Hypothesis (EMH).
The EMH suggests that financial markets are efficient, meaning that all relevant information is already priced into securities. However, it does not mean that every individual observation or investment will align with market expectations.
Therefore, the higher returns of commercial paper compared to T-bills might be due to various factors such as risk, liquidity, or market conditions, rather than a violation of the EMH.