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Explain what it means to “beat the market.” Why do many individuals -- both academic and...

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Finance

Explain what it means to “beat the market.” Why do manyindividuals -- both academic and nonacademic -- believe that suchis not systematically possible? Please be thorough. Whatmay move you to temper this view? Be very detailed on yourexplanation?

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3.9 Ratings (460 Votes)
By the term Beat the market we mean to say that earning the return on investment which exceeds the performance of the market indexes When we think about beating the market one term which comes across is Efficient Market Hypothesis It is a theory which states that all information available in the market is reflected by that particular asset price Its implication is that it is impossible to beat the market consistently on a risk    See Answer
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