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When money is put into the stock market, it is done with the aim of generating a return on the capital invested.

When money is put into the stock market, it is done with the aim of generating a return on the capital invested. Many investors try not only to make a profitable return but also to outperform, or beat, the market. However, market efficiency, championed in the efficient market hypothesis (EMH), suggests that, at any given time, prices fully reflect all available information on a particular stock and/or market. Thus, according to the EMH, no investor has an advantage in predicting a return on a stock price since no one has access to information not already available to everyone else.The nature of information does not have to be limited to financial news and research alone. Information about political, economic and social events, combined with how investors perceive such information, whether true or rumored, will be reflected in the stock price. According to EMH, as prices respond only to information available in the market, and, because all market participants are privy to the same information, no one will have the ability to out-profit anyone else. In efficient markets, prices become not predictable but random, so no investment pattern can be discerned. A planned approach to investment, therefore, cannot be successful.Question:Based on the above, how would you respond to the saying among investors that "you can never beat the market." What is your opinion about the statement? Do you agree or disagree? And why?

I agree to the statement that "you can never beat the market.‚ÄĚThis is because of the risk anduncertainty involved in stock markets which makes it possible only to gain moderately on long...
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