The Efficient Market Hypothesis Implies That

Multiple Choice

The efficient market hypothesis implies that

A) all investments should earn the same average rate of return over time.
B) any investment should earn a normal return commensurate with the investment's risk.
C) efficient markets will tend to have fixed prices from one day to the next.
D) stock prices are only efficient when all investors review their portfolios on a daily basis.
E) investors must be disinterested in their investments for the markets to be efficient.