Question 56
Which of the following understanding on how to make money in the financial market is correct?
1. One may be able to make money by taking certain risk in an efficient market.
2. One may be able to make money by providing liquidity in an efficient market.
3. One may be able to make money by having better information than the market and thus generate alpha in an efficient market.
4. One may be able to make money by having better information than the market and thus generate alpha in an inefficient market.
1 only
1 and 2 only
1, 2, and 3 only
1, 2, and 4 only
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