Question

In an efficient market, a.All investors will earn the same return b. It will be hard...

In an efficient market,

a.All investors will earn the same return

b. It will be hard or impossible to earn a better risk-adjusted return than everyone else

c.All relevant information is made available to the public

d. Active managers have a significant advantage over passive managers

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Answer #1

Correct Statement is C
Efficient market - Efficient market theory is also known as Efficient market hypothesis. EMH states that all the information is available to the Public, it is impossible to beat the market. Share price trade at fair value.
it is not possible to earn Alpha in the market. Investor should prefer passive manager as compared to Active manager , beacuse Active manager can't earn alpha and they will charge high return as compared to passive managers.

I hope this clear your doubt.

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