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Efficient Market Hypothesis

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The efficient market hypothesis asserts that:

a. It is virtually impossible to consistently pick stocks that perform exceptionally well because all publicly available information is immediately reflected in stock prices.

b. Studying historic patterns of stock price movements will generally identify winning investments

c. Fundamental analysis performed by individuals often reveals bargains despite the fact that professionals analyze all information as soon as it becomes available.

d. All of the above

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This solution is comprised of a detailed explanation to answer what the efficient market hypothesis asserts.

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The efficient market hypothesis is an investment theory that states that it is impossible to "beat the market" because stock market efficiency causes existing share prices to always incorporate and reflect all relevant information. According to the ...

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