The efficient markets hypothesis states

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The efficient markets hypothesis states that:

A. markets display cognitive dissonance, so look for stocks with high price-to-equity ratios.

B. the price of every stock equals the value of the stock, so no stock is a better buy than any other.

C. market participants can earn extra long-run returns, which drive up the price of a stock.

D. the price of every stock is greater than the value of the stock, so look for stocks with high prices.

Reference no: EM13848456

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