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The Efficient Market Hypothesis (EMH) states that: Security prices fully reflect available information about securities. Market participants reluctant to accept market risk will always invest

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The Efficient Market Hypothesis (EMH) states that: Security prices fully reflect available information about securities. Market participants reluctant to accept market risk will always invest in an index fund. Stock prices are random and unpredictable. Stock risk can be decomposed into stock specific risk and market risk

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