If markets are efficient then stock prices will

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1. The January effect relates to the ________________ of _______________ in the month of January.

a. abnormal returns; large stocks

b. abnormal returns; small stocks

c. arbitrage; small stocks

d. arbitrage; large stocks

2. If markets are efficient, then stock prices will:

a. overreact to new and relevant information.

b. underact to new and relevant information.

c. not react to new and relevant information.

d. reflect all new and relevant information quickly.

Reference no: EM131582335

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