If a market is truly efficient, investors should not waste their time trying to find and capitalize on mispriced securities.

Question

Quizplus · Accepted Answer

If a market is truly efficient, all securities are accurately priced and there would be no mispricings to capitalize on. Therefore, investors would not be able to generate higher returns by trying to find mispriced securities and would be better off investing in a broad-based index fund.

If a Market Is Truly Efficient, Investors Should Not Waste