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Basic Question 2 of 13
In a highly efficient market, a(n) ______ strategy is preferable.
B. active investment
A. passive investment
B. active investment
User Contributed Comments 4
| User | Comment |
|---|---|
| makisupa43 | Riiiiiiight. |
| abs013 | If that were true hedge funds wouldn't exist |
| timkalt | Moreover, the market can just adjust rapidly if active investors are present. |
| MathLoser | @abs013: Count how many hedge funds that can beat the market ?! |
I am using your study notes and I know of at least 5 other friends of mine who used it and passed the exam last Dec. Keep up your great work!
Barnes
Learning Outcome Statements
describe market efficiency and related concepts, including their importance to investment practitioners
contrast market value and intrinsic value
explain factors that affect a market's efficiency
CFA® 2025 Level I Curriculum, Volume 3, Module 3.