Which one of the following would best justify an investor hiring an active portfolio manager even though markets have been shown to be semistrong-form efficient?

Question

Quizplus · Accepted Answer

The discovery of market anomalies justifies an investor hiring an active portfolio manager because anomalies are inefficiencies in the market that can be exploited by skilled managers. The existence of anomalies suggests that markets may not be completely efficient in the semi-strong form.

Which One of the Following Would Best Justify an Investor