If markets are efficient,which of the following investors should achieve superior returns over time?
A)Investors who choose stocks by throwing darts at a list of stocks in the financial pages of a newspaper
B)Analysts who spend considerable time evaluating the best stocks to buy
C)Mutual fund managers who manage other people's money for a living
D)None of the options

Question

Quizplus · Accepted Answer

If markets are efficient, all available information is already priced into the stocks, making it impossible for any investor to consistently achieve superior returns over time. Therefore, none of the options will result in greater returns than the overall market.

If Markets Are Efficient,which of the Following Investors Should Achieve