An Implication of the Efficient Markets Hypothesis Is That

question 46

Multiple Choice

An implication of the efficient markets hypothesis is that

• A)only sophisticated investors will be able to earn above-normal profits from financial investments.
• B)above-normal profits are available only to major traders.
• C)above-normal profits will be eliminated in the trading process.
• D)unless he or she acts recklessly, the average investor should be able to make above-normal profits.

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