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The main practical implication for the individual investor of the efficient market theory is that she would be best off buying the market index. Several
The main practical implication for the individual investor of the efficient market theory is that she would be best off buying the market index. Several of the most important financial innovations of the past 50 years involved developing ways to make it easy for small investors to do that. Do the major stock market indices represent the market average or not? If not, what do they represent and is that what the EMH really meant that we should buy? Explain
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