According to the efficient markets hypothesis, purchasing the reports of financial analysts ________.
A) is likely to increase one's returns by an average of 10 percent
B) is likely to increase one's returns by about 3 to 5 percent
C) is not likely to be an effective strategy for increasing financial returns
D) is likely to increase one's returns by an average of about 2 to 3 percent

Question

Quizplus · Accepted Answer

According to the efficient markets hypothesis, all publicly available information will already have been reflected in the stock prices, including the information provided by financial analysts. Therefore, purchasing the reports of financial analysts is not likely to be an effective strategy for increasing financial returns.

According to the Efficient Markets Hypothesis, Purchasing the Reports of Financial