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There is evidence that managers do not always accept securities market efficiency. Thus, they may try to fool investors by releasing information that efficiency theory

image text in transcribed There is evidence that managers do not always accept securities market efficiency. Thus, they may try to "fool" investors by releasing information that efficiency theory predicts investors will see through, such as pro forma earnings. Which is the best way to prevent such behavior? Ensure full disclosure Educate managers about securities market efficiency Allow managers to manage earnings Require firms to produce two-year comparative financial statements

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