According to proponents of the efficient-market hypothesis, the best strategy for a small investor with a portfolio worth $40,000 is probably to

A) perform fundamental analysis.
B) exploit market anomalies.
C) invest in Treasury securities.
D) invest in derivative securities.
E) invest in mutual funds.

Efficient-Market Hypothesis

A theory that suggests that financial markets fully absorb and reflect all available information, making it impossible to consistently achieve higher returns than the market average.

Small Investor

An individual investor who makes relatively small amounts of investments in the stock market or other financial markets, often with limited resources.

Mutual Funds

Mutual funds are investment vehicles comprised of a pool of funds collected from many investors for the purpose of investing in securities such as stocks, bonds, money market instruments, and other assets.