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

  1. In an efficient market,
    1. All investors will earn the same return
    2. It will be hard or impossible to earn a better risk-adjusted return than everyone else
    3. All relevant information is made available to the public
    4. Active managers have a significant advantage over passive managers
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Answer #1

answer C is correct.

the all relevance inforation is available to everyone.

so no one can earn excessive income just becuase of informmation availability. so option a and c is incorrect. Risky investment earns higher return as compare to the non risky investments. so the opton B is also incorrect.

Only C is correct. The assumption of Efficient market hypothesis is that any new relevance information is made availbale to every investor in the amrket and no one can take advantage of the information individually.

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