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Which of the following statements is most correct? (Points : 6) A. If a stock\'s

ID: 2364280 • Letter: W

Question

Which of the following statements is most correct? (Points : 6) 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. An implication of the semistrong form of the efficient markets hypothesis is that you cannot consistently benefit from trading on information reported in the Wall Street Journal. D. Statements A and B are correct. E. All of the statements above are correct

Explanation / Answer

B. Market efficiency says that the actual realized returns on all stocks will be equal to the expected rates of return.

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