In an efficient market,it is not possible (except by chance)to employ trading strategies that generate excess profits over the long-term.

Question

Quizplus · Accepted Answer

In an efficient market, all available information is already reflected in the market price, making it difficult to consistently generate excess returns through trading strategies. Any anomalies or inefficiencies in the market tend to be quickly exploited by market participants, leading to prices adjusting and nullifying any potential profits. However, in real-world markets, there may be occasional opportunities to generate excess profits due to some market inefficiencies or information asymmetries.

In an Efficient Market,it Is Not Possible (Except by Chance)to