Question: A columnist on barrons.com notes that all possible knowledge about the 500 biggest stocks is fully discounted in their prices. Therefore, he concludes, passive ownership

500 biggest stocks is fully discounted in their prices." Therefore, he concludes,

A columnist on barrons.com notes that "all possible knowledge about the 500 biggest stocks is fully discounted in their prices." Therefore, he concludes, "passive ownership of that broad index beats active stock picking." What does the columnist mean when he refers to all possible knowledge being discounted into a stock's price? The columnist means that If he is correct, the prices of the 500 biggest stocks must be their fundamental values

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