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Assume that the value of a common stock as determined by the valuation formula is $50 but it is selling for $45. The efficient markets

Assume that the value of a common stock as determined by the valuation formula is $50 but it is selling for $45. The efficient markets theory predicts that the price will increase to $50 because

A. The Securities and Exchange Commission would not allow a stock to sell above its formula value.

B. The firm will sell more stock.

C. More investors will buy the stock than those willing to sell it.

D. Less investors will buy the stock than those willing to sell it.

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