Under the efficient market hypothesis, it is advisable to spend at least an hour a day altering your portfolio to take advantage of profit opportunities.

Question

Quizplus · Accepted Answer

The efficient market hypothesis suggests that all available information is already reflected in the prices of assets, making it difficult to consistently generate above-average returns by trading frequently. Therefore, it is not advisable to spend a significant amount of time altering your portfolio to take advantage of profit opportunities. Instead, a passive and long-term investment strategy is recommended.

Under the Efficient Market Hypothesis, It Is Advisable to Spend