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Jack owns an investment management firm. He has a habit of analysing the investment returns of companies listed on the Johannesburg stock exchange. He observed
Jack owns an investment management firm. He has a habit of analysing the investment returns of companies listed on the Johannesburg stock exchange. He observed that over the past five years the average returns on the ordinary shares of company A ltd were twice the returns on the ordinary shares of company B ltd Required:
a) | Explain whether this observation contradicts the efficient market hypothesis |
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