If the markets are efficient,the optimal investment strategy will be to buy and hold so as to minimize transaction costs.

Question

Quizplus · Accepted Answer

If the markets are truly efficient, then all available information is already incorporated into stock prices, making it difficult to consistently outperform the market through active trading. In this case, the optimal investment strategy would be to buy and hold a diversified portfolio of stocks or index funds with low fees in order to minimize transaction costs and benefit from long-term market gains.

If the Markets Are Efficient,the Optimal Investment Strategy Will Be