According to the efficient markets hypothesis:
no investor can consistently outperform the stock market indexes.
ordinary investors should always follow the advice of market geniuses like Warren Buffet.
when one investor outperforms the stock market index, another investor must underperform.
everyone can outperform the stock market indexes.
According to the efficient markets hypothesis (EMH), the correct statement is:
When one investor outperforms the stock market index, another investor must underperform.
The EMH suggests that all available information is already reflected in stock prices, meaning that it is impossible for any investor to consistently achieve returns that exceed the average market returns on a risk-adjusted basis. This implies that for one investor to outperform the market, another must underperform, as the total returns in the market are a zero-sum game.
The other statements do not accurately reflect the implications of the efficient markets hypothesis.