According to proponents of the efficient market hypothesis,the best strategy for a small investor with a portfolio worth $25,000 is probably to
A) perform fundamental analysis.
B) exploit market anomalies.
C) invest in Treasury securities.
D) invest in derivative securities.
E) invest in mutual funds.

Question

Quizplus · Accepted Answer

Proponents of the efficient market hypothesis argue that it is difficult for small investors to consistently outperform the market through individual security selection or market timing. Therefore, investing in a diversified mutual fund may be the most efficient way for small investors to participate in the stock market while reducing their risk.

According to Proponents of the Efficient Market Hypothesis,the Best Strategy