Efficient markets require which one of these?
A)Dart thrower investors
B)Only rational investors
C)Overly optimistic amateur investors
D)Countervailing irrationalities
E)Investors adhering to the conservatism principle

Question

Quizplus · Accepted Answer

Efficient markets do not rely solely on rational investors but can also function with a mix of investor behaviors, including irrational ones, as long as these irrationalities counterbalance each other. This diversity in behavior helps ensure that securities are fairly priced, reflecting all available information, as the effects of various irrational decisions can cancel out.

Efficient Markets Require Which One of These