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Q1. Eminent financial economist John Cochrane notes that the evidence shows that high valuations are, on average, followed by many years of poor returns, and
Q1. Eminent financial economist John Cochrane notes that the evidence shows that high valuations are, on average, followed by many years of poor returns, and vice versa. High valuations are not, on average, followed by years of good cash-flow growth, or by ever-higher valuations.
Do these findings contradict the efficient market hypothesis? Why or why not?
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