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    Business
  3. Study Set
    Money Banking and Financial Markets
  4. Exam
    Exam 7: The Stock Market, the Theory of Rational Expectations, and the Efficient Market Hypothesis
  5. Question
    If the Optimal Forecast of the Return on a Security
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If the Optimal Forecast of the Return on a Security

Question 89

Question 89

Multiple Choice

If the optimal forecast of the return on a security exceeds the equilibrium return,then


A) the market is inefficient.
B) no unexploited profit opportunities exist.
C) the market is in equilibrium.
D) the market is myopic.

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