Jane believes that she can beat the market on a consistent b

Jane believes that she can \"beat the market\" on a consistent basis by basing her trades on the pattern of prices that now exist. If true, what would Jane\'s trading pattern violate?

Solution

Efficient Market

If this turns out to be true Jane\'s trading pattern will violate the Efficient market. As per the Efficient market hypothesis it is impossible to beat the market since the prices present in the market reflect relevant information which affects the stock price. Hence beating the market is against the EMH.