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serveral celebrated investors and stock picked have recorded _____huge returns on their investments over the past...

serveral celebrated investors and stock picked have recorded _____huge returns on their investments over the past two decade. Is the success of these particular investors an invalidation of an efficient stock market?. Explain

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Answer #1
  • The efficient stock market states that the assets are fairly priced.
  • An implication of this is that, on average, a participating investor cannot earn excessive profits with a particular market trading strategy.
  • However, that does not mean that the few participants may not outperform in the market.
  • Certain investors who perform well gets lot of attention from the financial press while those investors who do not perform well, get very less attention from the financial press.
  • The range of success among participants is evenly distributed.
  • While some investors may get success over a certain period of time while others may have been underperforming.
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