According to the efficient market hypothesis
A) You cannot beat the stock market.
B) You should be able to outperform the market.
C) You cannot beat the bond market
D) You can only beat the stock market if you engage in option trading.

Question

Quizplus · Accepted Answer

The efficient market hypothesis states that all available information is fully reflected in a stock's price and therefore it is impossible to consistently achieve returns higher than the market average. This means that choice A is the correct answer as you cannot beat the stock market according to this hypothesis.

According to the Efficient Market Hypothesis