financial markets are efficient, this implies that all securities should earn the same return.

Question

Quizplus · Accepted Answer

Financial markets are not perfectly efficient, and securities can earn different returns due to various factors such as risk, liquidity, and market conditions. However, the concept of efficient markets suggests that all available information is reflected in security prices, which should prevent any consistent opportunities for above-average returns.

Financial Markets Are Efficient, This Implies That All Securities Should