How can C be the answer?
Share
Please briefly explain why you feel this question should be reported.
Please briefly explain why you feel this answer should be reported.
Please briefly explain why you feel this user should be reported.
Since the market is informationally efficient, so passive investor outperform active investor because active investor claim that they can earn supernormal profit by taking long and short position, on the other hands passive investor just buy the share as per publicly available information so they buy and hold the share until the new information not come in the market.
But isn’t buy and hold strategy not preferable?
Hi,
See the best strategy in this case is to buy & hold since there is no mispricing in the market as it is efficient. You cannot earn money by buying & selling regularly. In the long term you can just imitate the market & as it goes up, you make profit.
Hope this helps!
Yeah right.
Thank you.