Question: An efficient market is important in determining valuation because 1.it is easy to identify an overpriced asset. 2.it enables investors to outperform the market without

An efficient market is important in determining valuation because

1.it is easy to identify an overpriced asset.

2.it enables investors to outperform the market without taking on additional risk.

3.it is easy to identify an underpriced asset.

4.the only way investors can consistently outperform the market is by taking on a large amount of risk.

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