Arguments supports the efficient market hypothesis

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Reference no: EM131582329

1. Which of the following arguments supports the efficient market hypothesis?

a. Arbitrage may involve too much risk to offset irrational behavior

b. Irrationalities are countervailing

c. Irrationality may be related across investors

d. Investors may be irrational

2. Arbitrage

A. causes market inefficiencies

B. is the process of selling shares with the promise to repurchase them in the future

C. Causes prices to converge to their intrinsic value

D. Causes prices to diverge from their intrinsic value

Reference no: EM131582329

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