Financial investments are made in efficient markets. The existence of these markets suggests that
A)investors cannot earn superior returns
B)investors cannot expect to outperform the market consistently
C)securies prices are random
D)bearing additional risk will not increase return

Question

Quizplus · Accepted Answer

In efficient markets, all available information is already reflected in securities prices, making it impossible for investors to consistently outperform the market through either analysis or timing.

Financial Investments Are Made in Efficient Markets