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 fact that someone made $10,000 in a single day does not necessarily disprove the efficient market hypothesis. The efficient market hypothesis suggests that stock prices already reflect all available information and that it is difficult if not impossible for investors to consistently outperform the market. It is possible that the classmate's success was due to luck or insider information rather than a flaw in the efficient market hypothesis.

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