69. Assume the securities markets are strong-from efficient. Given this assumpti

Question

69. Assume the securities markets are strong-from efficient. Given this assumption, you should expect which one of the following to occur? A. The risk premium on any security in that market will be zero. B. The price of any one security in that market will remain constant at its current level. C. Each security in the market will have an annual rate of return equal to the risk-free rate. D. The price of each security in that market will frequently fluctuate. E. The price of each security will fall to zero because the net present value of the investments.

Explanation / Answer

B. The price of any one security in that market will remain constant at its current level

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