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Homework answers / question archive / Consider the following statements from two different investors regarding their strategies for investment
Consider the following statements from two different investors regarding their strategies for investment. Assuming the stock market is efficient, which investor has the best strategy? Be sure to fully explain your answer. Investor 1 Investor 2 My strategy is to find companies that are My strategy is to invest in mutual fund undervalued. Because they are undervalued, I representing the overall stock market. I do not expect these companies to experience a lot of believe I know that much more than all other growth. And I have been pretty successful at investors, so the stock price we see in the it. About 50% of the time, I am correct in market is probably a good indicator of the choosing undervalued stock. fundamental value of the stock. So there is no use in trying to find undervalued or overvalued stocks
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