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Author Question: What advice should investors heed if markets are efficient? (Read 46 times)

lracut11

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Question 1

Under the efficient markets hypothesis, the stock market is made efficient by
◦ high frequency traders.
◦ electronic exchanges.
◦ competition amongst investors.
◦ large, institutional traders (i.e., mutual funds).
◦ fiber optic and microwave communications technology.

Question 2

What advice should investors heed if markets are efficient?
◦ You can earn abnormally large returns by frequently buying and selling whenever you obtain new information.
◦ The best-informed traders always beat the market.
◦ Mutual funds run by expert managers consistently outperform index funds.
◦ Random stock picks will perform as well as a series of hot stock tips over long periods of time.
◦ Fundamental analysis is superior to technical analysis.


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Marked as best answer by lracut11 on Apr 25, 2021

SAUXC

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lracut11

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Reply 2 on: Apr 25, 2021
Excellent


juliaf

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Reply 3 on: Yesterday
YES! Correct, THANKS for helping me on my review

 

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