If you can use past returns to construct a trading strategy that makes money (has a positive

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If you can use past returns to construct a trading strategy that makes money (has a positive alpha), it is evidence that market portfolio is not efficient. Explain why.

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Corporate Finance The Core

ISBN: 9781292158334

4th Global Edition

Authors: Jonathan Berk, Peter DeMarzo

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Question Posted: Feb 29, 2024 04:01 AM

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If you can use past returns to construct a trading strategy that makes money (has a positive

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The Efficient Market Hypothesis EMH suggests that financial markets are efficient meaning that asset prices already incorporate and reflect all availa...View the full answer

Corporate Finance The Core

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