According to the efficient markets hypothesis, the person who most likely earns the highest return for holding the stock of Company ABC on a single day is:
A) a person who follows a buy-and-hold strategy.
B) an active trader who knows the historical prices of ABC.
C) ABC's CEO who has inside information about the company's new projects.
D) None of the answers is correct. No one can outperform anyone else at any time.

Question

Quizplus · Accepted Answer

The efficient markets hypothesis suggests that all available information is already reflected in stock prices. However, inside information, which is not yet public, can provide an advantage, allowing someone like ABC's CEO to potentially earn higher returns.

According to the Efficient Markets Hypothesis, the Person Who Most