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1. What is the difference between adaptive expectations and rational expectations?

2. What is the efficient markets hypothesis?

3. According to the efficient markets hypothesis, are stock prices predictable? What is a random walk?

4. Suppose that you buy an Apple iPad, you like it, and you think it will be a big seller. You expect that Apple's profits will increase tremendously as a result of booming iPad sales. Should you invest in Apple?

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