Which of the following does not weaken the efficient markets hypothesis?
A) Mean reversion
B) Success of buy-and-hold strategy
C) January effect
D) Excessive volatility

Question

Quizplus · Accepted Answer

The efficient markets hypothesis (EMH) posits that all available information is already reflected in stock prices, making it impossible to consistently achieve higher returns than the overall market through stock selection or market timing. A successful buy-and-hold strategy does not necessarily weaken the EMH, as it can be consistent with the hypothesis that markets are efficient over the long term, and it does not rely on exploiting short-term market inefficiencies.

Which of the Following Does Not Weaken the Efficient Markets