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The Efficient Markets Hypothesis Predicts That an Investor

Question 63

Multiple Choice

The efficient markets hypothesis predicts that an investor


A) will not be able consistently to earn above-normal profits from buying or selling stocks.
B) will be able consistently to earn above-normal profits from buying or selling stocks so long as he or she makes use of rational expectations.
C) will be able consistently to earn above-normal profits from buying or selling stocks so long as he makes us of adaptive expectations.
D) will be able consistently to earn above-normal profits so long as stock prices in general are rising.

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