If you are the CEO of a corporation, and the market is at least semistrong efficient, then

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In a semistrong efficient market, all publicly available information is reflected in the stock prices, therefore, it is unlikely to have a valuation of the company's worth that differs from what the market says it's worth unless you possess inside information. Option A is incorrect because merging with other firms might not always provide diversification benefits for the shareholders. Option C is incorrect because taking over other companies that you deem are selling at too low a price might not always create value for your company. In a semistrong efficient market, all publicly available information, including information on potential mergers and acquisitions, is already reflected in the stock prices. Therefore, it is unlikely that a CEO can create value for their firm by merging with other firms or taking over other companies at a low price. Instead, the CEO should focus on improving their own operations to generate value for their shareholders.

If You Are the CEO of a Corporation, and the Market