Your classmate just made $10,000 in a single day by trading in the stock market. It is reasonable to conclude, therefore, that the efficient market hypothesis cannot be true.

Question

Quizplus · Accepted Answer

The efficient market hypothesis (EMH) suggests that all known information is already reflected in stock prices, making it impossible to consistently achieve higher returns than the overall market through traditional analysis or insider information. However, the EMH does not rule out the possibility of making significant profits (or losses) in a short period due to market volatility, luck, or taking on high risk.

Your Classmate Just Made $10,000 in a Single Day by Trading