The Efficient Markets Hypothesis Implies That Active Investing Strategies Can

question 98

True/False

The efficient markets hypothesis implies that active investing strategies can outperform passive investing strategies.

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Definitions:

Projected Net Present Value

An estimation of the present value of an investment's future net cash flows minus the initial investment cost.

Capital

Financial assets or the financial value of assets, such as cash or goods, used to generate income or wealth.

Internal Rate

A financial metric, often referred to as the internal rate of return (IRR), that calculates the profitability of potential investments.

Return

Total monetary flow of an asset as a fraction of its price.