Whic of statement does not show that markets are efficient

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Problem 1: Which of the following statement does not show that markets are efficient?

Group of answer choices

Option 1: A retail investor makes winning trades (trades that result in profits) as often as he makes losing trades (trades that result in losses).

Option 2: Investors with inside knowledge are able to outperform the benchmark 80% of the time.

Option 3: Most investors are only able to outperform the market if they are able to understand the company and market information and are also skilled at forecasting firms' future performance.

Option 4: Most active funds underperform their benchmark (assuming that the benchmark is a correct reflection of the investment style and risk of investment) after fees and other costs.

Option 5: Investors with low understanding of finance and capital markets may beat the benchmark sometimes (30% of the time) but most times (70% of the time) they underperform the benchmark.

Reference no: EM132976863

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