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    Corporate Finance Study Set 3
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    Exam 13: Efficient Capital Markets and Behavioral Challenges
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    Explain Why in an Efficient Market Investments Have an Expected
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Explain Why in an Efficient Market Investments Have an Expected

Question 6

Question 6

Essay

Explain why in an efficient market investments have an expected net present value (NPV)of zero.

Correct Answer:

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In an efficient market,prices are "fair"...

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