The efficient market hypothesis suggests that investors should not expect to outperform the market.

Question

​The efficient market hypothesis suggests that investors should not expect to outperform the market.

Quizplus · Accepted Answer

The efficient market hypothesis argues that it is very difficult, if not impossible, to consistently outperform the overall market because public information is already reflected in current stock prices. Therefore, investors should expect to earn average returns that are commensurate with the level of risk they are willing to take on.

​The Efficient Market Hypothesis Suggests That Investors Should Not Expect

The Efficient Market Hypothesis Suggests That Investors Should Not Expect