The efficient markets hypothesis implies that an investor:
A) cannot systematically outperform the market as a whole over time.
B) should rely on publicly available information to outperform the market.
C) should buy and sell lower volumes of shares.
D) can manage a portfolio and regularly outperform the whole market.

Question

Quizplus · Accepted Answer

The efficient markets hypothesis states that all relevant information is already reflected in the stock prices, making it impossible for an investor to systematically outperform the market over time. Therefore, choice A is the correct answer. Choices B, C, and D are incorrect as they do not align with the implications of the efficient markets hypothesis.

The Efficient Markets Hypothesis Implies That an Investor