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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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