Asked by Katherine Roman on Jul 12, 2024
Verified
Define the efficient markets hypothesis.
Efficient Markets Hypothesis
The theory that asset prices fully reflect all available information, making it impossible to consistently achieve higher returns than the overall market through stock picking or market timing.
- Clarify the premise of the efficient markets hypothesis and its impact on formulating strategies for investment.
Verified Answer
TD
Thaís DutraJul 13, 2024
Final Answer :
The efficient market hypothesis says that the value of an asset reflects all publicly available information about its value.
Learning Objectives
- Clarify the premise of the efficient markets hypothesis and its impact on formulating strategies for investment.