The efficient$-$market hypothesis:

Multiple Choice

implies that security prices properly reflect information available to investors but has little empirical validity.

has little empirical validity.

implies that active traders will find it easy to outperform a buy$-$and$-$hold strategy.

has little empirical validity and implies that active traders will find it difficult to outperform a buy$-$and$-$hold strategy.

implies that security prices properly reflect information available to investors and that active traders will find it difficult to outperform a buy$-$and$-$hold strategy.