Which of the following is a TRUE statement about stock markets?

A) Economists can make above-average profits in the stock market because of their specialized knowledge of economics.
B) It is always better to buy growth stocks than the older and more stable blue-chip stocks.
C) The stock market on average over time is random and totally unrelated to the performance of the economy.
D) It is illegal for a friend of a corporate executive to make large profits in the stock market by using his inside information.


D

Economics

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The risk premium is negative when tastes are risk averse.

Answer the following statement true (T) or false (F)

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An increase in ________ leads to an equal ________ in the monetary base in the short run

A) float; decrease B) float; increase C) discount loans; decrease D) Treasury deposits at the Fed; increase

Economics

If the monopolist facing the demand curve P = 10 - Q is a perfectly discriminating monopolist and marginal cost is constant at $4, how much will the firm sell if it profit maximizes?  

A. 6 B. 4 C. 5 D. 10

Economics

Why does a bank sometimes hold excess reserves?

What will be an ideal response?

Economics