In an efficient market, the only way to earn higher returns is to invest in riskier securities.

Name: In an efficient market, the only way to earn higher returns is to invest in riskier securities.
Brand: Quizplus
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Question

Quizplus · Accepted Answer

In an efficient market, all available information is already reflected in the prices of securities, so the only way to achieve higher returns is by taking on more risk, as per the risk-return tradeoff principle.

In an Efficient Market, the Only Way to Earn Higher