10. Market efficiency implications (S12.3)* True or false?

a. If markets are efficient, shareholders should expect to receive only the risk-free interest rate on their investment.

b. If markets are efficient, investment in the stock market is a mug’s game.

c. If markets are efficient, investors should just invest in firms with good management and an above-average track record.

d. In an efficient market, investors should expect stocks to sell at a fair price.