Question: Question I An efficient market is one in which no one ever profits from having better information than the rest. Is this statement true, false,

Question I

"An efficient market is one in which no one ever profits from having better information than the rest." Is this statement true, false, or uncertain? Explain your answer and reasoning.

Question II

This week we focus on portfolio theory. Based on your understanding of the concepts, determine whether the following is true: "As the number of securities held in a portfolio increases, the importance of each individual security's risk decreases." Explain whether you agree or disagree and provide your reasoning.

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