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. Which of the following statements is most correct? (Points : 6) A. If the stoc

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Question

. Which of the following statements is most correct? (Points : 6) A. If the stock market is weak-form efficient, this means you cannot use private information to outperform the market. B. If the stock market is semistrong-form efficient, this means the expected return on stocks and bonds should be the same. C. If the stock market is semistrong-form efficient, this means that high beta stocks should have the same expected return as low beta stocks. D. Statements B and C are correct. E. None of the statements above are correct.

Explanation / Answer

B. If the stock market is semistrong-form efficient, this means the expected return on stocks and bonds should be the same.