Assuming that the stock market is efficient

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Assuming that the stock market is efficient, is each of the following statements true or false (to receive full credit, you must explain why in two or three sentences or with an example)?

1) The stock price of Company X doubled over the past year, the stock price of Company Z decreased by over 50%. Company X is the better stock investment today.

2) The stock price of Company X doubled over the past year, the stock price of Company Z decreased by over 50%. The market increased by 10%. The two stocks must have different Betas.

3. This week's discussion is about employee fraud and the audit of cash. Please find an example of an employee fraud related to cash. Please explain the details behind the fraud and what could have been done differently to prevent it from happening.

Reference no: EM13807309

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