Does the efficient markets hypothesis imply that the average investor will not earn anything by purchasing stock?
A)No,the efficient market hypothesis implies that the average investor should not expect to receive abnormally high returns on a consistent basis.
B)Yes,the efficient markets hypothesis implies that the best that the average investor can do is break even.
C)No,the efficient market hypothesis implies that the investor will consistently earn abnormally high returns by purchasing stock.
D)Yes,the efficient markets hypothesis implies that stock purchases are extremely risky and that the average investor has no hope of recovering any loss.

Question

Quizplus · Accepted Answer

The efficient market hypothesis suggests that the stock prices at any given time reflect all available information, making it difficult for investors to consistently make abnormal returns. However, it does not mean that the average investor will not earn anything from purchasing stock. It only suggests that such returns will not be consistently abnormally high. Therefore, option A is the best choice.

Does the Efficient Markets Hypothesis Imply That the Average Investor