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Security prices are set by active market participants. Which of the following is NOT a consequence of this fact? The price is set by the
Security prices are set by active market participants. Which of the following is NOT a consequence of this fact?
The price is set by the buyer willing to pay the highest price. | ||
The market price will be set by the buyer who can take best advantage of the asset. | ||
Market participants have a strong incentive to reveal private information about a security. | ||
Superior information about an asset can increase its value by reducing its risk. |
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