The efficient markets theory of stock prices,implies that

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Quizplus · Accepted Answer

The efficient markets theory suggests that stock prices reflect all available information, so it's difficult to consistently beat the market by actively selecting individual stocks. This means that investing in a diversified portfolio of stocks and holding onto them for the long-term is likely to yield similar results to trying to pick stocks based on insider information or market trends. Therefore, the best choice is to invest in the stock market knowing that it's difficult for even expert investors to consistently outperform the market, but investing in a diversified portfolio can yield positive returns over the long-term.

The Efficient Markets Theory of Stock Prices,implies That