"Tips" published in leading commercial or financial publications are unlikely to lead to profitable trades because
A) only wealthy individuals can buy stocks in the volume necessary to take advantage of tips.
B) whatever is gained by trading on the basis of tips will be taxed away by the government.
C) the news will already be reflected in the market prices of the assets.
D) the news contained in the tips is usually inaccurate.
C
You might also like to view...
The market price of the product produced by Jones Inc, is $6 per unit, which is higher than the average cost of $4 per unit at the profit maximizing output level. The average variable cost of production is $3.5 per unit. If demand for its product declines due to introduction of cheaper substitutes and the market price of the product falls to $3.8 per unit, which of the following statements will
be true? a. The firm will close down in the short run. b. The firm will continue production as long as the market price is above average variable cost. c. The firm will continue production as long as the market price exceeds fixed cost. d. The firm will minimize it losses by producing where average variable cost equals $3.8.
In long-run equilibrium under perfect competition,
a. the firm and the industry will have the same cost curves. b. only a very few firms will be earning economic profits. c. the demand curves facing individual firms will fall to the level of minimum AC. d. individual firms will tend to increase their outputs.
The natural rate of unemployment is calculated by adding together the ______ rates of unemployment.
a. cyclical and frictional b. cyclical and structural c. frictional and structural d. cyclical, frictional, and structural
In Figure 21.4, the long-run average total cost curve is given by the curved line segment
A. ABFDGE. B. ACE. C. BFD. D. ABF only.