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According to the Theory of Efficient Markets

Question 69

Multiple Choice

According to the theory of efficient markets:


A) investors use rules of thumb to make choices about which stocks to buy and sell.
B) investors are able to use forecasts based on the dividend-discount model to generate above- average returns.
C) a portfolio manager who charges no commission should not, on average, outperform an individual investor with access to the same funds.
D) the stock price should remain constant.

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