Which one of the following is required for a trader to earn excess profits?
A) excessive trading
B) excessive research
C) market inefficiency
D) highly volatile market state
E) relatively stable market state

Question

Quizplus · Accepted Answer

Excess profits can only be earned if there is a market inefficiency, which means that the market price does not reflect the true value of the asset. Traders who can identify and exploit market inefficiencies can earn excess profits. Excessive trading or research, and a highly volatile or stable market state, are not necessarily required for earning excess profits.

Which One of the Following Is Required for a Trader