> If the markets are efficient, does it mean that you can buy at any time, > using any methods and you will still make the same returns as somebody else > who is smarter ? > Koushik
No. Because some assets and asset groups are riskier than others, and higher risks get higher returns. Also, a diversified porfolio gets a higher return relative to risk. Modern Portfolio Theory is a method by which one first selects a level or risk or volatility, then allocates assets into categories to obtain the highest return relative to that risk. The asset vehicles are index mutual funds, since these have the lowest costs, and active picking seldom performs better. Fred Foldvary ===== [EMAIL PROTECTED]
