Q841
Stock market theory which states that stocks are in equilibrium and impossible for investors to beat market is classified as an
A.
inefficient market hypothesis
B.
efficient market hypothesis
AnswerC.
efficient stock hypothesis
D.
inefficient stock hypothesis
Answer: Option B
Solution
Answer: Option B
Solution:
Stock market theory which states that stocks are in equilibrium and impossible for investors to beat market is classified as an efficient market hypothesis. The Efficient Market Hypothesis, or EMH, is an investment theory whereby share prices reflect all information and consistent alpha generation is impossible.