Equity Investments Q125
0. In an inefficient market, investors will most likely benefit from a(n):
- Option : B
- Explanation : In an inefficient market, investors might be able to earn superior risk adjusted returns since opportunities for it exist in the market e.g. due to mispricing. However, in an efficient market a passive investment strategy would be preferred to an active strategy for its lower costs and because opportunities for earning superior risk adjusted returns in an efficient market are negligible.
