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Question #48996

If the efficient markets hypothesis is true, then ?

Options:

A) shares tend to be overvalued

B) the stock market is informationally efficient so share prices should follow a random walk

C) All of these answers

D) fundamental analysis is a valuable tool for increasing one’s returns from investing in shares

Answer: If the efficient markets hypothesis is true, then the stock market is informationally efficient so share prices should follow a random walk.

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