Question: Question 11. Assume computer technology is so advanced that the market, as confirmed by numerous unbiased studies, has been shown to be semi-strong form efficient.

Question 11.

Assume computer technology is so advanced that the market, as confirmed by numerous unbiased studies, has been shown to be semi-strong form efficient. Investment firms therefore have decided to retire all the portfolio managers and financial analysts and invest only in portfolios that track passive indexes. What mistake is implicit in this action?

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