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The Efficient Markets Hypothesis Says That

Question 381

Multiple Choice

The efficient markets hypothesis says that:


A) stock markets reflect irrational behaviour,and therefore stock prices could be overvalued or undervalued.
B) stock prices embody much public information and therefore are not overpriced or underpriced.
C) the three stock market indexes will provide consistent information about the stock market.
D) financial fluctuations in markets do not affect the macro economy in a noticeable way.

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