Fama and Blume (1966)showed that investors could _________ by exploiting filter rules.

Question

Quizplus · Accepted Answer

Fama and Blume (1966) showed that investors cannot earn abnormal returns by exploiting filter rules after accounting for transaction costs. This is known as the efficient market hypothesis, which suggests that all relevant information is already incorporated into security prices, making it difficult to consistently outperform the market through individual security selection or timing strategies.

Fama and Blume (1966)showed That Investors Could _________ by Exploiting