If the optimal forecast of the return on a security exceeds the equilibrium return, then:
A) the market is inefficient.
B) no unexploited profit opportunities exist.
C) the market is in equilibrium.
D) the market is myopic.
Answer: A
If the optimal forecast of the return on a security exceeds the equilibrium return, then:
A) the market is inefficient.
B) no unexploited profit opportunities exist.
C) the market is in equilibrium.
D) the market is myopic.
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