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  3. Study Set
    Corporate Finance Core Study Set 1
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    Exam 13: Efficient Capital Markets and Behavioral Challenges
  5. Question
    Markets Tend to Be Efficient When
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Markets Tend to Be Efficient When

Question 5

Question 5

Multiple Choice

Markets tend to be efficient when


A) arbitrage is unlawful.
B) amateurs dominate the market.
C) all investors are required to be rational.
D) professional arbitrage exceeds amateur speculation.
E) prices adjust to new information slowly.

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