Which group of investors is capable of earning consistent,superior profits if financial markets are strong-form efficient?
A) Only technical analysts will be able to profit.
B) Only fundamental analysts will be able to profit.
C) Only inside traders will be able to profit.
D) No one will be capable of sustained, superior profits.

Question

Quizplus · Accepted Answer

According to the theory of strong-form market efficiency, all information, public or private, is already reflected in the current stock prices. Therefore, no investor, including technical analysts, fundamental analysts, or inside traders, can consistently earn superior profits by using any analysis or information. The hypothesis suggests that the market is always efficient, and any attempt to earn profits from it will be futile.

Which Group of Investors Is Capable of Earning Consistent,superior Profits