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A Person Who Believes Strongly in the Use of Fundamental

Question 42

Multiple Choice

A person who believes strongly in the use of fundamental analysis to choose a portfolio of stocks


A) has a better chance of outperforming the market if stock prices follow a random walk than if they do not follow a random walk.
B) almost always chooses to hold index funds in his or her portfolio rather than actively-managed funds.
C) is spending his or her time wisely if the efficient markets hypothesis is correct.
D) is interested in the likely ability of a corporation to pay dividends in the future.

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