Efficient market and financing

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[Efficient Market and Financing] What does the efficient-market hypothesis have to say about these two statements?

a. “I notice that short-term interest rates are about 1% below long-term rates. We should borrow short-term.”

b. “I notice that interest rates in Japan are lower than rates in the United States. We would do better to borrow Japanese yen rather than U.S. dollars.”

Reference no: EM132041944

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