Tests of market efficiency have focused on
A) the mean-variance efficiency of the selected market proxy.
B) strategies that would have provided superior risk-adjusted returns.
C) results of actual investments of professional managers.
D) strategies that would have provided superior risk-adjusted returns and results of actual investments of professional managers.
E) the mean-variance efficiency of the selected market proxy and strategies that would have provided superior risk-adjusted returns.

Question

Quizplus · Accepted Answer

Tests of market efficiency often focus on strategies that could have yielded superior risk-adjusted returns and on the actual investment outcomes of professional managers to assess whether it's possible to consistently outperform the market, which would challenge the market's efficiency.

Tests of Market Efficiency Have Focused on