Based on the evidence, active trading strategies are unlikely to outperform passive portfolio management strategies on a consistent basis.

Question

Quizplus · Accepted Answer

Most empirical studies and financial theories suggest that, due to market efficiency, costs, and the difficulty in consistently predicting market movements, active trading strategies on average do not outperform passive portfolio management strategies over the long term.

Based on the Evidence, Active Trading Strategies Are Unlikely to Outperform