How stocks are priced in an efficient

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A friend of yours recently claimed to have developed a new strategy that, she claims, will earn super high returns in the stock market. Her direct statement was that "Trading the mood swings of the monthly lunar cycle will produce three-to-six times the profit of a simple, buy-and-hold strategy." Being the more conventional type, you take it upon yourself to explain to your friend how stocks are priced in an efficient, competitive market. Good luck! Your friend holds strong opinions and will only be convinced by sound logic, clearly stated.

Reference no: EM13287583

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