If you can use past returns to construct a trading strategy that makes money (has a positive
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If you can use past returns to construct a trading strategy that makes money (has a positive alpha), it is evidence that market portfolio is not efficient. Explain why.
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The Efficient Market Hypothesis EMH suggests that financial markets are efficient meaning that asset prices already incorporate and reflect all availa...View the full answer
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Related Book For
Corporate Finance The Core
ISBN: 9781292158334
4th Global Edition
Authors: Jonathan Berk, Peter DeMarzo
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