Which of the following statements is correct?
A) If a stock's beta increased but its growth rate remained the same, then the new equilibrium price of the stock will be higher (assuming dividends continue to grow at the constant growth rate) .
B) Market efficiency says that the actual realized returns on all stocks will be equal to the expected rates of return.
C) Weak-form efficiency suggests that tape watchers and chartists can earn profits by discovering patterns as to when stock prices rise or fall.
D) An implication of the semistrong form of the efficient markets hypothesis is that you cannot consistently benefit from trading on information published in the company annual reports.
Correct Answer:
Verified
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