According to the efficient markets hypothesis, a. excessive diversification can reduce an investors expected portfolio returns. b.

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According to the efficient markets hypothesis,

a. excessive diversification can reduce an investor’s expected portfolio returns.

b. changes in stock prices are impossible to predict from public information.

c. actively managed mutual funds should generate higher returns than index funds.

d. the stock market moves based on the changing animal spirits of investors.

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Essentials Of Economics

ISBN: 9780357723166

10th Edition

Authors: N. Gregory Mankiw

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