The efficient markets hypothesis says that beating the market consistently is
A)impossible.Many studies find that beating the market is,at best,extremely difficult.
B)impossible.Many studies find that beating the market is relatively easy.
C)relatively easy.Many studies find that beating the market is,at best,extremely difficult.
D)relatively easy.Many studies find that beating the market is relatively easy.

Question

Quizplus · Accepted Answer

The efficient markets hypothesis states that all publicly available information is already incorporated into stock prices, making it impossible to consistently beat the market by using this information. Many studies in finance support this idea, showing that, at best, beating the market is extremely difficult. Therefore, option A is the correct answer.

The Efficient Markets Hypothesis Says That Beating the Market Consistently