If an investor believes that financial markets are inefficient, that argues for the individual to pursue a more active portfolio strategy.

Question

Quizplus · Accepted Answer

If an investor believes that financial markets are inefficient, they may think that securities can be mispriced, which creates opportunities for active management to select securities that are undervalued or to avoid those that are overvalued, aiming to achieve better returns than passive strategies.

If an Investor Believes That Financial Markets Are Inefficient, That