If a Firm Employs 5,000 Analysts, How Many of Them

question 26

Multiple Choice

If a firm employs 5,000 analysts, how many of them are likely to issue forecasts that beat the market eight years in a row, assuming none of them has any superior ability and that there are
No transaction costs?

• A)about 20
• B)about 50
• C)about 300
• D)less than 10

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Definitions:

Financial Industry

A sector of the economy devoted to the management, exchange, and investment of financial assets and offering financial services.

Visas

Official documents or endorsements that allow a person to enter or leave a country, typically issued by the country’s government.

Refugee Crisis

A situation where large numbers of people are displaced and seek asylum due to conflict, persecution, or environmental disasters.

World Financial Center

A term that may refer to a major financial district that houses large banks, stock exchanges, and financial institutions.