The efficient markets hypothesis implies that active investing strategies can outperform passive investing strategies.

Question

Quizplus · Accepted Answer

The efficient markets hypothesis states that it is not possible to consistently outperform the market through active investing strategies because all available information is already reflected in stock prices. Therefore, it suggests that passive investing strategies, such as index funds, are more likely to generate better returns over the long term.

The Efficient Markets Hypothesis Implies That Active Investing Strategies Can