An investor who picks a portfolio by throwing darts at the financial pages:
A)believes that efficient markets will protect the portfolio from harm as all information is priced.
B)believes that riskier portfolios earn the same as less risky portfolios.
C)does so because stock prices do not matter; only cash flow generated matters.
D)Both A and C.
E)Both B and C.

Question

Quizplus · Accepted Answer

Efficient market hypothesis suggests that all available information is already reflected in stock prices, so random selection (like throwing darts) is as good as any other method.

An Investor Who Picks a Portfolio by Throwing Darts at the Financial