Question: 4. According to the efficient markets hypothesis, a. actively managed mutual funds should provide higher returns than index funds. b. excessive diversification can reduce a

4. According to the efficient markets hypothesis,

a. actively managed mutual funds should provide higher returns than index funds.

b. excessive diversification can reduce a portfolio’s return and increase its risk.

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

d. stock prices are influenced by the irrational psychology of investors.

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