The theory of ___________________ implies that information is quickly embedded in prices making it difficult for investors to "beat the market."
A) stock investing
B) efficient markets
C) portfolio management
D) asset allocation

Question

Quizplus · Accepted Answer

The theory of efficient markets states that information is quickly incorporated into stock prices, making it difficult for investors to consistently earn returns that beat the overall market. Therefore, choice B is the most appropriate answer. The other choices (stock investing, portfolio management, and asset allocation) do not directly relate to this concept.

The Theory of ___________________ Implies That Information Is Quickly Embedded