Concept based on efficient market hypothesis.

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According to the efficient markets hypothesis,a. changes in stock prices are impossible to predict from publicinformation.b. excessive diversification can reduce an investor's expected portfolioreturns.c. the stock market moves based on the changing animal spirits ofinvestors.d. actively managed mutual funds should give higher returns than indexfunds.

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Chapter 14, Problem 6CQQ

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Concept based on efficient market hypothesis.

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According to the efficient markets hypothesis,a. changes in stock prices are impossible to predict from publicinformation.b. excessive diversification can reduce an investor's expected portfolioreturns.c. the stock market moves based on the changing animal spirits ofinvestors.d. actively managed mutual funds should give higher returns than indexfunds.

Which type of financial intermediary provides individual investors with professional management of their money and diversification in order to limit the risk of investing? A. mutual funds B. insurance companies C. hedge funds D. investment banks

which one is correct? According to the semistrong-form efficient market hypothesis, which of the following types of information are fully reflected in stock prices? a. dividend and earnings announcements b. earnings announcements and rates of return c. rates of return, trading volume, and news about the economy d. All of these are correct. e. rates of return, trading volume, and block trades