Question

Founder of Vanguard, Jack Bogle, believes that all investors should buy stock indices. Group of answer choices He believes in strong form market efficiency. He believes in semi-strong form market efficiency. He believes in weak form market efficiency. He believes markets are not efficient.

Answer 1

Correct Answer:

1. He believes in strong form market efficiency.

Step-by-step explanation:

Jack Bogle believed that, in a situation where people simply buy an entire group of stocks as a result of investors investing money into the index fund, it will create a strong market. That is, if every investor in the world only purchased the same index fund, then the market of buyers and sellers would no longer set the fair market price of the stocks in the stock market.