Question: b . On March 1 6 , 2 0 2 0 , the stock market fell almost ( 1 3 % )

b. On March 16,2020, the stock market fell almost \(13\%\).
How can we reconcile these kinds of huge losses in the stock market with the efficient market hypothesis?
The efficient markets hypothesis applies only to "normal" times, not periods when asset bubbles burst.
The efficient markets hypothesis does not apply to day-to-day changes in the stock market, only long-run trends.
The efficient markets hypothesis says that financial prices move unpredictably. That includes large and rapid fluctuations in the stock market.
Losses this large reflect too many investors trying to beat the market, which the efficient markets hypothesis does not allow.
b . On March 1 6 , 2 0 2 0 , the stock market

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