A basic assumption made by the active portfolio managers is that securities markets are

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Active portfolio managers assume that securities markets are inefficient, which means that it is possible to achieve excess returns by actively managing a portfolio. If markets were perfectly efficient, then all securities would be accurately priced, and it would be impossible to achieve abnormal returns. Strong-form and semistrong-form efficiency assume that all available information is already priced into securities, which also implies that markets are highly efficient.

A Basic Assumption Made by the Active Portfolio Managers Is