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Investors cannot earn excess profits based on the analysis of historical price information

Investors cannot earn excess profits based on the analysis of historical price information. We say that the financial markets are:

strong form efficient.

weak form efficient.

not efficient at any level.

semistrong form efficient.

Stock A has an expected return of 16 percent and a beta of 1.4. Stock B has an expected return of 11 percent and a beta of 0.8. Both stocks have the same reward-to-risk ratio. What is the risk-free rate?

2.13 percent

3.26 percent

1.27 percent

4.33 percent

Dec 04 2019 View more View Less

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