According to the Efficient Market Theory

question 2

Multiple Choice

According to the efficient market theory,

• A) prices of actively traded stocks can be under- or over-valued in an efficient market, and bear searching out.
• B) prices of actively traded stocks can only be under-valued in an efficient market.
• C) prices of actively traded stocks do not differ from their true values in an efficient market.
• D) prices of actively traded stocks can only be over-valued in an efficient market.

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