Assume that the information system is so advanced that the market, as confirmed by numerous unbiased studies, is efficient Investment firms therefore decide to retire all portfolio managers and financial analysts and let random choice govern the security selection process What impact will this acti...

The efficiency of the market is based upon the continuing se ...

Assume that the information system is so advanced that the market, as confirmed by numerous unbiased studies,

Question:

Assume that the information system is so advanced that the market, as confirmed by numerous unbiased studies, is efficient. Investment firms therefore decide to retire all managers and financial analysts and let random choice govern the security selection process. What impact will this action have on market efficiency?

Portfolio
A portfolio is a grouping of financial assets such as stocks, bonds, commodities, currencies and cash equivalents, as well as their fund counterparts, including mutual, exchange-traded and closed funds. A portfolio can also consist of non-publicly...