If the stock market is (inefficient, efficient) , its a waste of time for people

Question

If the stock market is (inefficient, efficient) , its a waste of time for people. These stocks will be (fairly, unfairly ) priced. Most importantly the profirlia should be ( specialized, uniform, diversified )


The words between the paraphrase are options given . Please help a Fhanclal Management BUS-2339 Home Grades am 1 I Back to A nt Today at 05:10 P Attempts Score: 16. Financial Markets and Institutions: Stock Market E Stock Market Efficiency The (-Select insights from remains one of the cornerstones of modern finance theory. It implies that, on average, asset prices are values. Many events in the real world seem inconsistent with the hypothesis, which has spurred a growing field called elect finance, that borrows t dvantage of mispriced assets. Second, it considers why mispricing occurs. Investors and managers behave differently in down markets than they do in up markets and individuals tend to I-Select I their true abilities. f the available information and these stocks will be select: priced. However, an investor should still be careful when selecting stocks for his or her portfolio. Most Copyright Notices Terms of Use Privacy NoticeSecurity Notice

Explanation / Answer

The (efficient market hypothesis) remains ones of the cornerstones of modern fiancé theory. It implies that on average asset prices are approximately(equal to)their intrinsic value.

Which has spurred a growing field called (behavioral). Individuals tend to (overestimate) their true abilities .

If the stock market is (efficient) , its a waste of time for people. These stocks will be (fairly) priced. Most importantly the profirlia should be (diversified )

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