Which of the following is NOT true about the efficient market hypothesis?
A)Market prices reflect all available information at any given time.
B)Market prices do not fluctuate dramatically.
C)Market prices are considered fair.
D)Investors cannot continuously earn an excess return over and above the risk-adjusted return.

Question

Quizplus · Accepted Answer

The efficient market hypothesis does not suggest that market prices do not fluctuate dramatically. In fact, the theory acknowledges that prices can and do fluctuate based on changes in available information or other factors. However, the theory contends that these fluctuations are random and cannot be consistently predicted or exploited for excess returns.

Which of the Following Is NOT True About the Efficient