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Question
We can expect that the U.S. stock markets will be efficient for all of the following reasons EXCEPT:a. A large number of rational, profit-maximizing investors exist who actively participate in the U.S. market by analyzing, valuing, and trading stocks.
b. The U.S. economy is the largest in the world, with the most sophisticated investors.
c. Information is costless and widely available to market participants at approximately the same time.
d. Investors react quickly and fully to the new information, causing stock prices to adjust accordingly.
Answer
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