Active investment strategies, consisting of efforts to time purchases and select stocks, are pursued by investors who believe that securities are mispriced enough that it is possible to capitalize on strategies that are designed to exploit the perceived inefficiency.

Question

Quizplus · Accepted Answer

Active investment strategies involve trying to find mispriced securities and taking advantage of them, which suggests that investors believe there are inefficiencies in the market. Therefore, the statement is true.

Active Investment Strategies, Consisting of Efforts to Time Purchases and Select