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Question 1 When the market risk premium decreases, stock prices will Orise O fall Orecover O have excess volatility Question 2 If markets are efficient
Question 1 When the market risk premium decreases, stock prices will Orise O fall Orecover O have excess volatility Question 2 If markets are efficient under a strong-form, this implies that Ohigh-beta stocks are consistently overpriced low-beta stocks are consistently overpriced nonzero alphas will quickly disappear O growth stocks are better buys than value stocks 0/0.5 pts
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