If the efficient markets hypothesis is true, then?

2323EconomicsMedium

Athe stock market is informationally efficient so share prices should follow a random walk

Bshares tend to be overvalued

Cfundamental analysis is a valuable tool for increasing one’s returns from investing in shares

DAll of these answers

Correct answer

A. the stock market is informationally efficient so share prices should follow a random walk

Explanation

The correct answer is the stock market is informationally efficient so share prices should follow a random walk.

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