The efficient markets hypothesis states that:?

Question

A. The irrationality of people's actions provides opportunities for profit in the stock market.

B. You should only invest in companies that produce goods and services in an efficient manner.

C. Spending time and money analyzing stocks is unlikely to raise your portfolio's rate of return.

D. Stock prices "walk" or move in a predictable path.

Answer 1

Efficient Markets Hypothesis simplified:

Sellers want to buy low.

Buyers want to sell high.

They meet in the middle.

Replace Seller with business and Buyer with consumer.

Its B.

Answer 2

c

I think that is full of c**p, but hey, its a hypothesis, not a fact!

:)

Answer 3

none of the above