The stock market is an efficient market

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Reference no: EM13976163

Use the following information to determine which of the following statements is most accurate:

"Steven's finance professor in college convinced him that the stock market is an efficient market. Steven is 26 years old and just started to save for his retirement by opening up an IRA account. You can assume that Steven's assumption that the stock market is efficient is correct."

a. Steven would get better value for his time and money by investing in individually selected stocks than he would from investing in multiple index funds, such as the S&P 500.

b. Steven would get better value from his time and money by investing in multiple index funds, such as the S&P 500, than he would from trying to build a portfolio from individually selected stocks.

Reference no: EM13976163

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