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10. If the financial market are efficient then: - Stock prices should remain constant - Stock prices should increase or decrease slowly as new events
10. If the financial market are efficient then:
- Stock prices should remain constant
- Stock prices should increase or decrease slowly as new events are analyzed and the information is absorbed by markets
- An increase in the value of one security should be offset by a decrease in the value of another security.
- Stock prices will only change when an event actually occurs, not at the time the event is anticipated.
- Stock prices will fully reflect all information available to the market.
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