Which of the following is/are true about the Efficient Markets Hypothesis (EMH) I.The required rate of return on a stock is equal to the expected return II. Stocks are fairly valued III. Stocks are always in equilibrium IV. It is impossible for an investor who does not have inside information to constantly “beat the market” Select one: a. I and II only b. II and IV only c. I only d. All of the above

Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
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Which of the following is/are true about the Efficient Markets Hypothesis (EMH)

I.The required rate of return on a stock is equal to the expected return

II. Stocks are fairly valued

III. Stocks are always in equilibrium

IV. It is impossible for an investor who does not have inside information to constantly “beat the market”

Select one:
a.

I and II only

b.

II and IV only

c.

I only

d.

All of the above

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