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Question

Which of the following statements about the implications of tests for the efficient

Accepted Answer

Other than corporate insiders and market specialists, most traders have monopolistic access to

information, which rejects the strong-form EMH.

Answer

By purchasing an index fund, an investor can match the market return and minimize costs.

Answer

Technical trading rules do not consistently provide excess returns after adjusting for trading costs and taxes.

Answer

The best way to measure the performance of investments professionals is against a randomly selected buy-hold strategy of stocks (assuming the same risk level).

Which of the following statements about the implications of tests for the efficient market hypothesis (EMH) is FALSE?

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