The fact that investors in the stock market feel they have to act quickly in order to take advantage of a possible profit opportunity is evidence that the efficient market hypothesis probably holds true.

Question

Quizplus · Accepted Answer

The efficient market hypothesis suggests that all available information is already reflected in stock prices, meaning that there are no opportunities to take advantage of undervalued or overvalued stocks. If investors feel the need to act quickly in order to benefit from these opportunities, it suggests that they do not believe in the efficient market hypothesis. Therefore, if investors are not feeling this pressure, it is likely that the efficient market hypothesis is holding true.

The Fact That Investors in the Stock Market Feel They