If financial markets are efficient,then attempting to accurately predict interest rates is:
A)an endeavor best left to corporate executives.
B)a relatively easy and accurate exercise.
C)a waste of good time.
D)relatively easy to do if you have a general understanding of finance and economics.
E)a little tricky but wise managers tend to succeed at it on an ongoing basis.

Question

Quizplus · Accepted Answer

If financial markets are efficient, attempting to accurately predict interest rates would be a waste of time because all available information is already reflected in market prices. In an efficient market, prices adjust quickly and accurately to new information, making it difficult to consistently outperform the market by trying to predict interest rates. Therefore, option C is the correct answer.

If Financial Markets Are Efficient,then Attempting to Accurately Predict Interest