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Efficient Market Hypothesis

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Efficient Market Hypothesis: A stock market analyst is able to identify "mispriced" stocks by comparing the average price for the last 10 days to the average price for the last 60 days. If this is true, what do you know about the market?

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The solution concisely explains the concepts while simultaneously answering the question. The solution is very well explained and explains a common misunderstanding about the Efficient Market Hypothesis. Overall, an excellent response.

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If the above is true, then the market may not be efficient. The market may be efficient ...

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