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:

Drawer

The person who writes or issues a check or draft, instructing a bank to pay a specified sum of money to a specified person or entity.

Payee

An individual or entity that is designated to receive a payment or financial transaction.

Nonnegotiable

Refers to a financial instrument that cannot be transferred or endorsed to another party.

Separate Agreement

A distinct contract or arrangement that is made independently from any other agreements or contracts.