If the prices of securities fully reflect all the information available,then passive investors are best advised to invest in index-based mutual funds (unit trusts)with the lowest administration costs.

Question

Quizplus · Accepted Answer

If prices fully reflect all available information, there would be no advantage to active management, and passive investment in low-cost index-based mutual funds would be the most efficient strategy.

If the Prices of Securities Fully Reflect All the Information