Question

Are markets efficient? Explain your answer

Are markets efficient? Explain your answer

Homework Answers

Answer #1

History says that stock market is efficient. Market are efficient when the market securities prices represents all the information that is available in the market. ie it is not possible ot earn from the fundamental aor technical analysis on a continuos basis. There can be periods of inefficiency but the same will be wasived off once the information is readily available in the market. If the people are able to make profits then the markeyt are noyt efficient. There are no free lunches n the market or we can say that no once can beat the market on a continuos basis.

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