Questions
True/False
Is the following statement regarding market efficiency true or false? “The efficient market hypothesis assumes that forecasts are unbiased”[Fill in the blank]
Options
A.True
B.False
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Step-by-Step Analysis
Contextualizing the statement helps: the efficient market hypothesis (EMH) deals with how information is reflected in asset prices.
Option 1: True. The EMH implies that price changes are driven by new information, and once information is incorporated, forecast errors......Login to view full explanationLog in for full answers
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An efficient market does not require that:
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