To take advantage of long-run price movements in an efficient market, you must do a superior job of estimating the relevant variables that cause these long-run movements.

Question

Quizplus · Accepted Answer

This statement is true. In an efficient market, long-run price movements are determined by relevant variables such as economic growth, inflation, interest rates, and geopolitical events. Therefore, to take advantage of these movements, one must accurately estimate these variables and their impact on the market.

To Take Advantage of Long-Run Price Movements in an Efficient