If the 'sufficient conditions' outlined by Fama are met for an efficient market then it is impossible,on average,to earn economic profits by trading on security information.

Question

Quizplus · Accepted Answer

If the 'sufficient conditions' for an efficient market are met, then all information about a security is already reflected in its price. Therefore, it is impossible to consistently earn economic profits by trading based on security information, as the price already incorporates all available information.

If the 'Sufficient Conditions' Outlined by Fama Are Met for an Efficient