Which principle explains why it is hard to beat the market?
A) technical investing principle
B) efficient markets hypothesis
C) systematic risk evaluation principle
D) buy and hold principle

Question

Quizplus · Accepted Answer

The efficient markets hypothesis states that all relevant information is already reflected in the current market price, making it difficult to consistently outperform the market. Therefore, option B is the best choice as it directly addresses this principle. The other options are not directly related to the difficulty of beating the market.

Which Principle Explains Why It Is Hard to Beat the Market