Which of the following is generally TRUE for the stock market?
A) it takes time for new information to be reflected in new stock values
B) a stock's dividend is the net present value of the stock's price
C) stock market returns tend to be lower on average than the returns on Treasury bills
D) stock market prices tend to fall when long-term interest rates rise
E) stock market prices can be accurately predicted by carefully observing their long-term trend
Correct Answer:
Verified
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