Question

In an efficient capital? market, the optimal investment strategy? (over the long?run) is

Answer 1

In an efficient capital market, the optimal investment strategy over the long-run is to allocate capital in a way that maximizes returns. This can be achieved by diversifying the investment portfolio to spread risk and by considering factors such as risk tolerance, time horizon, and investment goals. For example, a diversified portfolio may include a mix of stocks, bonds, and other assets to minimize the impact of individual investment losses.

Step-by-step explanation:

In an efficient capital market, the optimal investment strategy over the long-run is to allocate capital in a way that maximizes returns.

This can be achieved by diversifying the investment portfolio to spread risk and by considering factors such as risk tolerance, time horizon, and investment goals.

For example, a diversified portfolio may include a mix of stocks, bonds, and other assets to minimize the impact of individual investment losses.