According to the efficient market hypothesis a High beta stocks are consistently overpriced b Low beta stocks are consistently overpriced c Positive alphas on stocks will quickly disappear d Negative alpha stocks consistently yield low returns for arbitrageurs ...

The correct Option is C That is positive alphas on stocks ...

According to the efficient market hypothesis: a. High-beta stocks are consistently overpriced. b. Low-beta stocks are consistently

Question:

According to the efficient market hypothesis:
a. High-beta are consistently overpriced.
b. Low-beta are consistently overpriced.
c. Positive alphas on will quickly disappear.
d. Negative alpha consistently yield low returns for arbitrageurs.

Stocks
Stocks or shares are generally equity instruments that provide the largest source of raising funds in any public or private listed company's. The instruments are issued on a stock exchange from where a large number of general public who are willing...