The Efficient-Market Hypothesis

Multiple Choice

The efficient-market hypothesis

A) implies that security prices properly reflect information available to investors.
B) has little empirical validity.
C) implies that active traders will find it difficult to outperform a buy-and-hold strategy.
D) has little empirical validity and implies that active traders will find it difficult to outperform a buy-and-hold strategy.
E) implies that security prices properly reflect information available to investors and that active traders will find it difficult to outperform a buy-and-hold strategy.