If a friend tells you that he is certain a stock price will rise based on information he heard on television or saw on the Internet, should you be skeptical? Explain.

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Final Answer : Yes, according to the efficient markets hypothesis stock prices reflect all publicly available information. It is likely that buyers and sellers of the stock have already seen the information, so it is already reflected in the price.

If a friend tells you that he is certain a stock price will rise based on information he heard on television or saw on the Internet, should you be skeptical? Explain.

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