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Suppose That Research Shows That by Buying Stocks Issued by Companies

Question 64

Multiple Choice

Suppose that research shows that by buying stocks issued by companies whose names begin with the letter G investors can earn above-normal returns in even-numbered years. From the perspective of the efficient markets hypothesis,


A) this is further evidence that the hypothesis is correct.
B) this would be considered a pricing anomaly.
C) investors must have insider information on these companies.
D) purchasers of these stocks must have been noise traders.

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