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What Advice Should Investors Heed If Markets Are Efficient

Question 111

Multiple Choice

What advice should investors heed if markets are efficient?


A) You can earn abnormally large returns by frequently buying and selling whenever you obtain new information.
B) The best-informed traders always beat the market.
C) Mutual funds run by expert managers consistently outperform index funds.
D) Random stock picks will perform as well as a series of hot stock tips over long periods of time.
E) Fundamental analysis is superior to technical analysis.

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