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    Corporate Finance Study Set 4
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    Exam 14: Efficient Capital Markets and Behavioral Challenges
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    Suppose Your Cousin Invests in the Stock Market and Doubles
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Suppose Your Cousin Invests in the Stock Market and Doubles

Question 23

Question 23

Essay

Suppose your cousin invests in the stock market and doubles her money in a single year while the market,on average,earned a return of only 15 percent.Is your cousin's performance a violation of market efficiency?

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No,market efficiency does not preclude i...

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