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Mary Talked to Several Stockbrokers and Made the Following Conclusions

Question 330

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Mary talked to several stockbrokers and made the following conclusions. Which, if any, of her conclusions are correct?


A) It is relatively easy to reduce firm-specific risk by increasing the number of companies one holds stock in.
B) Stock prices, even if not exactly a random walk, are very close to it.
C) Some people have made a lot of money in the stock market by using insider information, but these cases are not contrary to the efficient markets hypothesis.
D) All of Mary's conclusions are correct.

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