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You are going to decide whether or not to buy stocks of a firm. The firms financial statements are the main sources of information that
You are going to decide whether or not to buy stocks of a firm. The firms financial statements are the main sources of information that you use to make this decision. Assume that the market is semi-strong form efficient, and accounting under non-ideal conditions is used.
Explain why you must trade-off relevance and reliability of the information in the firms financial statements. Define the relevance and reliability of financial information as part of your answer.
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