In the Alfred Hitchcock Presents Episode "Mail Order Prophet," a Man

question 166

Multiple Choice

In the Alfred Hitchcock Presents episode "Mail Order Prophet," a man receives mysterious letters that accurately predict the movements of certain stocks. After being correct several times in a row, the man, upon the letter's request, sends money to the market prophet in exchange for his latest stock tip. At the end of the episode we learn the "prophet" is actually a con man who sends a letter to many people with half the letters predicting a stock will increase and the other half predicting it will decrease. How does this Hitchcock episode illustrate one particular theory of Warren Buffet's wealth?

• A) It was very difficult to send out all those letters; hard work pays off.
• B) Like the letters in the story, Buffet happened to be right several times in a row.
• C) Buffet conned his way to the top, using insider information to become wealthy.
• D) Diversification is an important way to protect investments and build wealth.

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Definitions:

Human Resource Management

A strategic approach to managing a company's employees, focusing on recruiting, managing, and directing people effectively.

Break-even Point

The financial state where total revenues equal total expenses, resulting in no profit but no loss.

Revenues Equal Costs

A financial break-even point where the total revenues generated equal the total costs incurred.

Value Creation

The process through which businesses or organizations produce goods or services that are worth more than the cost of the inputs involved.