Free markets produce allocatively efficient outcomes and have no flaws

Which type of stock should result in the best return according to the Efficient Markets Hypothesis?

A) a firm that is expected to be highly profitable in the future B) a firm that is considered to be undervalued C) a firm expected to earn little profit in the future D) none of the above

Suppose $100 is deposited in a bank account paying 5% compounded annually. If the interest earned is X after five years, then the interest earned will be 2X after 10 years

Indicate whether the statement is true or false