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10 Consider the following statements on the different forms of the Efficient Markets Hypothesis (EMH). I. The weak form of the EMH asserts that future
10
Consider the following statements on the different forms of the Efficient Markets Hypothesis (EMH). I. The weak form of the EMH asserts that future changes in stock prices cannot be predicted from past changes in prices. II. The semi-strong form of the EMH implies that technical analysts cannot expect to outperform the market. III. The strong form of the EMH implies that company insiders cannot consistently make abnormal profits by investing in their company's stock. Which of the following is correct? a. Statements I and II are correct, Statement III is incorrect. b. Statements II and III are correct, Statement I is incorrect. c. Statements I, II and III are correct. d. Statements I and III are correct, Statement II is incorrect. e. Statements I, II and III are incorrectStep by Step Solution
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