If the U.S.capital markets are not informationally efficient ______.
A) the markets cannot be allocationally efficient
B) then systematic risk does not matter
C) then no type of analysis can be used to generate abnormal returns
D) then returns must follow a random walk

Question

Quizplus · Accepted Answer

If the U.S. capital markets are not informationally efficient, it means that prices do not fully reflect all available information. This inefficiency can lead to misallocation of resources, meaning the markets cannot be allocationally efficient.

If the USCapital Markets Are Not Informationally Efficient ______