Does the Efficient Markets Hypothesis Imply That the Average Investor

question 29

Multiple Choice

Does the efficient markets hypothesis imply that the average investor will not earn anything by purchasing stock?

• A)No,the efficient market hypothesis implies that the average investor should not expect to receive abnormally high returns on a consistent basis.
• B)Yes,the efficient markets hypothesis implies that the best that the average investor can do is break even.
• C)No,the efficient market hypothesis implies that the investor will consistently earn abnormally high returns by purchasing stock.
• D)Yes,the efficient markets hypothesis implies that stock purchases are extremely risky and that the average investor has no hope of recovering any loss.

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Definitions:

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