In an efficient securities market, the investor should earn, over a period of years, a return comparable to the amount of risk the individual bears.

Question

Quizplus · Accepted Answer

In an efficient securities market, prices fully reflect all available information, meaning that securities are fairly priced based on their risk levels. Therefore, over time, investors should expect to earn returns that are commensurate with the level of risk they have taken on.

In an Efficient Securities Market, the Investor Should Earn, Over