Question

Explain what it means to “beat the market.” Why do many individuals -- both academic and nonacademic -- believe that such is not systematically possible? Please be thorough. What may move you to temper this view? Be very detailed on your explanation?

Answer 1

Beat the market means performing better than stock market index.In other words to earn more than stock market.Everyone tries to beat the market in the best way possible but it is said that only very few succeed lets say only 1% or 2% people are able to beat the market therefore many individuals believe that it is not systematically possible.

Almost every investor has the information which is already available in the market therfore finding a information which is not available to everyone is very difficult hence it is not possible to perform better with the same information available.Unless the investor is an outsider it is not possible find the different information.

Sometimes it depends on just luck since everyone in the market is trying to outperform others it becomes very important to be lucky than anyone else. Even after a great analysis one can not beat the market if the same is not lucky enough.