Which one of the following is required for a trader to earn abnormal profits?
A)abnormal trading
B)excessive research
C)market inefficiency
D)highly volatile market state
E)relatively stable market state

Question

Quizplus · Accepted Answer

In order for a trader to earn abnormal profits, there must be a market inefficiency. This means that the market is not accurately reflecting the true value of an asset or security, allowing for opportunities to buy low and sell high. Without a market inefficiency, it is difficult for a trader to earn abnormal profits regardless of their trading methods, research, or the state of the market.

Which One of the Following Is Required for a Trader