Which of the following statements is (or are)true of the efficient markets hypothesis?
A) It implies perfect forecasting ability.
B) It implies that prices reflect all available information.
C) It results from keen competition among investors.
D) It implies that market is irrational.
E) It implies that prices do not fluctuate.

Question

Quizplus · Accepted Answer

The efficient markets hypothesis suggests that asset prices reflect all available information due to the competition among investors, but it does not imply perfect forecasting ability, irrationality, or that prices do not fluctuate.

Which of the Following Statements Is (Or Are)true of the Efficient