If financial markets are efficient, that suggests that:. a. investors cannot expect to outperform the market consistently.
b. security prices are random.
c. investors cannot earn superior.
d. returns bearing additional risk will not increase return.

A

Explanation:

The efficient market hypothesis posits that market prices contains all information in the market. As a result, an investor cannot consistently expect to outperform the market or consistently generate a positive alpha.

The efficient market hypothesis thus suggests a passive form of investment.

Forms of the efficient market hypothesis

a. the weak form - market prices contain information about past market prices. thus there is no need for technical analysis

b. the semi strong - it posits that market prices consists of all publicly available information

c. the strong form - it submits that market prices reflects both publicly and privately available information. As a result, excess returns cannot be earned consistently through insider trading

answer; im thinking customer:

if it is for a job, then you should learn everything you can about the job, like what does it involve, what qualification is required and how you are the right person for that job. dress appropriately for the interview. get plenty of rest the night before. good luck!