Proponents of the EMH typically advocate
A) an active trading strategy
B) investing in an index fund
C) a passive investment strategy
D) a and b
E) b and c

Question

Quizplus · Accepted Answer

Proponents of the Efficient Market Hypothesis (EMH) believe that it is impossible to consistently beat the market through active trading or stock picking, as all available information is already reflected in stock prices. Therefore, they advocate for investing in passive strategies, such as index funds, which aim to track the performance of the overall market. This aligns with choices B and C, making E the correct answer.

Proponents of the EMH Typically Advocate