The Efficient Market Hypothesis Suggests That

question 55

Multiple Choice

The efficient market hypothesis suggests that

• A) investors should not try to outguess the market by constantly buying and selling securities.
• B) investors do better on average if they adopt a "buy and hold" strategy.
• C) buying into a mutual fund is a sensible strategy for a small investor.
• D) all of the above are sensible strategies.
• E) only A and B of the above are sensible strategies.