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Suppose expected annual return is 5% for stock A and 10% for stock B. That is, stock B has a higher expected return than stock

image text in transcribedSuppose expected annual return is 5% for stock A and 10% for stock B. That is, stock B has a higher expected return than stock A. Does this imply that the stock market is inefficient? Explain.

Suppose expected annual return is 5% for stock A and 10% for stock B. That is, stock B has a higher expected return than stock A. Does this imply that the stock market is inefficient? Explain

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