True or False: This fact violates the efficient markets hypothesis because the efficient markets hypothesis argues that it is impossible to earn above-market returns.

True

Explanation:

It is true that this fact violates the efficient markets hypothesis because the efficient markets hypothesis argues that it is impossible to earn above-market returns.

Efficient market hypothesis holds that asset prices reflect all available information. A direct implication is that it is impossible to "beat the market" consistently on a risk-adjusted basis since market prices should only react to new information.

Hence since it is impossible to beat the market, it is impossible to earn above-market returns.