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14. Stock market efficiency An analyst believes that the intrinsic value of Black Sheep Broadcasting Companys stock is around $45 per share, but the firms stock is currently trading at $20 per share. If this analyst is correct, this would be considered an market. Read the following statement, and use its information to determine which of the following statements is most accurate. Stevens finance professor in college convinced him that the stock market is an efficient market. Steven is 26 years old and just starting to save for his retirement by opening up an IRA account. You can assume that Stevens assumption that the stock market is efficient is correct. O Steven would get better value for his time and money by investing in multiple index funds, such as the S&P 500, than he would from trying to build a portfolio from individually selected stocks. Steven would get better value for his time and money by investing in individually selected stocks than he would from investing in multiple index funds, such as the S&P 500.

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