Question 8 Which of the following statement is true? ...
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Finance
Question 8
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Which of the following statement is true?
Only market efficiency believers can make money because they invest in index funds which generate beta-related returns.
Market efficiency believers cannot make money in the stock market because they believe stock prices are correct. So no investment opportunities. Only market inefficiency believers can make money from the stock market because they only invest when there is alpha.
Both market efficiency believers and market inefficiency believers may make money. But the ways they make money is different. The former makes money through beta-related returns, while the latter makes money through alpha-related returns.
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You can see the logs in the Dashboard.