According to the efficient market hypothesis

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1. The problem of preventing managers from acting in their own best interests and instead acting in the best interests of the stockholders is the _______?

Agency Problem

Business environment problem

Stockholder problem

Principle Problem

2. According to the efficient market hypothesis, which one of the following is NOT correct:

Markets place a premium on the future

Today’s stock price is the best predictor of tomorrow’s stock price

Stock prices reflect all available information

Today’s stock price incorporates the past history of prices

And please explain WHY.

Reference no: EM131838346

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