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If the efficient-market hypothesis is true, the pension fund manager might as well select a portfolio with a pin. Explain

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“If the efficient-market hypothesis is true, the pension fund manager might as well select a portfolio with a pin.” Explain why this is not so.

Portfolio
A portfolio is a grouping of financial assets such as stocks, bonds, commodities, currencies and cash equivalents, as well as their fund counterparts, including mutual, exchange-traded and closed funds. A portfolio can also consist of non-publicly...

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The efficient market hypothesis does not imply that portfolio …View the full answer


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Principles of Corporate Finance

Principles of Corporate Finance

ISBN: 978-0072869460

7th edition

Authors: Richard A. Brealey, Stewart C. Myers

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Question Posted: June 08, 2011 06:52:30
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