Assuming that the efficient market hypothesis is true, which of the following regarding the implications of the EMH is incorrect?
A) Technical analysis and the weak form of the EMH directly conflict.
B) In theory, most investors can do a superior job of analysis and profit thereby.
C) Professional money managers would still have certain important tasks to perform.
D) Investors who use the same data and make the same interpretations as other investors will experience only average results.

Question

Quizplus · Accepted Answer

The efficient market hypothesis (EMH) suggests that all available information is already reflected in stock prices, making it impossible for investors to consistently achieve higher returns through analysis. Therefore, the statement that most investors can do a superior job of analysis and profit thereby is incorrect under the EMH.

Assuming That the Efficient Market Hypothesis Is True, Which of the Following