1. There are regulations that prohibit "insider trading," which is the use of nonpublic information...

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Accounting

1. There are regulations that prohibit "insider trading," which is the use of nonpublic information about a security to earn abnormal profits from trading that security. Which form of market efficiency would make these laws unnecessary? Explain why.

2.You find a certain stock that had returns of 14 percent, -27 percent, 19 percent, and 21 percent for four of the last five years, respectively. What is the average return of the stock over this period? What is the standard deviation of the stock's returns?

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