If Each of the Approximately 320,000 Securities and Financial Service

question 198

Multiple Choice

If each of the approximately 320,000 securities and financial service agents in the United States bet on whether the market would go up or down for each of the next 10 years by flipping a coin, we would expect that approximately 312 agents would have been right 10 years in a row. This example suggests that:

• A) it is easy to beat the market averages.
• B) famous investors like Warren Buffett may have merely been lucky.
• C) there are above-normal profit opportunities in the stock market.
• D) All of the answers are correct.

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Definitions:

API Gravity Degrees

A measurement system used to determine the density of petroleum liquids compared to water.

Price Per Barrel

The cost or price unit for crude oil and other commodities, measured per barrel, a standard unit for volume in the oil industry.

Standard Error of Estimate

The standard error of the estimate is a measure of the accuracy of predictions made with a regression line, quantifying the dispersion of observed values around the predicted values.

API Gravity Degrees

A measure of how heavy or light a petroleum liquid is compared to water, used in the oil industry to characterize crude oil.