Chloe talked to several stockbrokers and made the following conclusions. Which, if any, of Chloe's conclusions are correct?
a. It is relatively easy to reduce firm-specific risk by increasing the number of companies one holds stock in.
b. Stock prices, even if not exactly a random walk, are very close to it.
c. Some people have made a lot of money in the stock market by using insider information, but these cases are not contrary to the efficient markets hypothesis.
d. All of Chloe's conclusions are correct.
d
You might also like to view...
The economy pictured in the figure has a(n) ________ gap with a short-run equilibrium combination of inflation and output indicated by point ________.
A. recessionary; A B. recessionary; C C. recessionary; B D. expansionary; A
Without government intervention, public goods would
a. be much less expensive. b. not be provided. c. be produced in much larger quantity. d. be priced within the income ability of all individuals to purchase them.
A 3 percent increase in the price of tea causes a 6 percent increase in the demand for coffee. The cross elasticity of demand for coffee with respect to the price of tea is:
A. -0.5 B. +0.5 C. -2.0 D. +2.0
If coffee and tea are substitutes, then an increase in the price of coffee will result in an increase in the demand for tea.
Answer the following statement true (T) or false (F)