No particular stock is a better buy than any other stock if
A)stock prices are driven by investors' "animal spirits."
B)the random-walk theory of stock prices is incorrect.
C)the efficient markets hypothesis is correct.
D)actively managed mutual funds always outperform index funds.

Question

Quizplus · Accepted Answer

The efficient markets hypothesis suggests that all stocks are priced correctly based on all available information, meaning that no particular stock is undervalued or overvalued. Therefore, there is no inherently better or worse stock to buy. The other options are unrelated or incorrect.

No Particular Stock Is a Better Buy Than Any Other