In a competition of financial analysts vs. throwing a dart to choose stocks, according Burton Malkiel, financial analysts came out ahead due to all of the following reasons EXCEPT:
A) it considered only stock prices, not dividends
B) investors that followed the contest were influenced to purchase the stocks recommended by the analysts
C) failure of the Efficient Markets Hypothesis
D) part of the return for the analysts resulted from compensation for the higher risk of the stocks chosen
C
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During a period of economic expansion, when expected profitability is high,
A) the demand curve for bonds shifts to the left. B) the supply curve of bonds shifts to the right. C) the equilibrium interest rate falls. D) the equilibrium price of bonds rises.
The people who sit on the Federal Reserve Open Market Committee are ____________.
Fill in the blank(s) with the appropriate word(s).
Ceteris paribus means allowing all things to change.
a. true b. false
Which of the following examples, ceteris paribus, is most likely to cause a leftward shift in that nation’s long-run aggregate supply curve?
a. Canada reduces government regulations on businesses. b. Mexico experiences 10 years of favorable weather conditions. c. The United States lowers its retirement age by 10 years. d. Norway increases access to on-the-job training programs.