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Given the predictability evidence for the U.S. stock market, which of the following statements are correct? 1. A random walk process is an accurate model

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Given the predictability evidence for the U.S. stock market, which of the following statements are correct? 1. A random walk process is an accurate model for the variation in major U.S. stock market indices (e.g., S&P 500). II. Predictable annual stock market returns imply that each year's return is a draw from a probability distribution with a different mean. III. Last ten years' returns are not informative about the next ten years returns. A. II and III B. Only I O C. I and II O D.Only

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