Determining the efficient market hypothesis

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Suppose that, after conducting an analysis of past stock prices, you come up with the following observations. Which would appear to contradict the weak form of the efficient market hypothesis? Please explain.

a. One could have made superior returns by buying stock after a 10% rise in price and selling after a 10% fall.

b. One could have made higher-than-average capital gains by holding stocks with low dividend yields.

Reference no: EM132524747

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