The implication of efficient capital markets and a lack of superior analysts have led to the introduction of
A) balanced funds.
B) naive funds.
C) January funds.
D) index funds.
E) futures and options.

Question

Quizplus · Accepted Answer

The implication of efficient capital markets is that it is difficult for investors to consistently outperform the market. Therefore, investing in an index fund that tracks a broad market index may be the most efficient way to invest. Index funds are designed to match the performance of a particular market index and require minimal management and expense ratios.

The Implication of Efficient Capital Markets and a Lack of Superior