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Which one of the following statements best defines the efficient market hypothesis? A. Efficient markets limit competition. B. Security prices in efficient markets remain steady

Which one of the following statements best defines the efficient market hypothesis?

A.

Efficient markets limit competition.

B.

Security prices in efficient markets remain steady as new information becomes available.

C.

Mispriced securities are common in efficient markets.

D.

All securities in an efficient market are zero net present value investments.

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