An efficient stock market means that:
traders in a market will choose to buy stocks based on gut feelings.
it is difficult to outperform the market, since stock prices convey all relevant public information about a company.
traders with inside information cannot even outperform market averages.
new information is slowly reflected in stock prices.
An efficient stock market means that:
it is difficult to outperform the market, since stock prices convey all relevant public information about a company.
In an efficient market, stock prices reflect all available information, making it challenging for investors to achieve returns that exceed the average market return on a risk-adjusted basis. This concept is central to the Efficient Market Hypothesis (EMH). The other statements do not accurately describe the characteristics of an efficient market.