Question
In a perfectly efficient market the best investment strategy is probably _______.
Answer
Invest in a passive index fund.
- Q: What is a perfectly efficient market? A: A perfectly efficient market is a hypothetical situation where all investors have equal access to all available information and all market participants have access to all relevant information.
- Q: What is the best investment strategy in a perfectly efficient market? A: In a perfectly efficient market, the best investment strategy is probably to invest in a passive index fund because it provides broad market exposure and low fees.