If markets are efficient, it is ________ when trading on the basis of information.
A) easy to ignore a random walk
B) possible to make sustained profits
C) impossible to make economic profits
D) easy to generate economic rent
E) difficult to understand fundamentals

Question

Quizplus · Accepted Answer

If markets are efficient, all publicly available information should already be incorporated into the stock price, making it impossible to consistently make economic profits solely based on that information. This means any profits made would only be due to luck or chance, rather than a systematic advantage.

If Markets Are Efficient, It Is ________ When Trading on the Basis