Examveda
Examveda

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

C. efficient stock hypothesis

D. inefficient stock hypothesis

Answer: Option B

Solution(By Examveda Team)

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.

Join The Discussion

Related Questions on Financial Management

Investment is the _______________.

A. net additions made to the nation’s capital stocks

B. person’s commitment to buy a flat or house

C. employment of funds on assets to earn returns

D. employment of funds on goods and services that are used in production process