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The Efficient Market Hypothesis States That

Question 47

Multiple Choice

The efficient market hypothesis states that:


A) Requiring firms to issue more stock will reduce volatility.
B) Requiring investors to hold securities longer will reduce volatility.
C) Electing a pro-business Republican president makes the market more efficient.
D) Taxing security returns will raise prices .
E) Markets price securities fairly at all times and that new information is rapidly reflected in the price.

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