Noise Traders

question 51

Multiple Choice

Noise traders

• A) tend to lose money on stock trades, but help to stabilize the market.
• B) tend to make higher returns than do "buy-and-hold" investors.
• C) create additional risk in the market by increasing price fluctuations.
• D) trade only when they have inside information.

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Definitions:

Simple Random Sampling

A method of selecting a sample in which every member of the population has an equal chance of being chosen.

Youngsters

Youngsters refers to children and teenagers, often implying a focus on their development, education, and socialization.

Confidence Interval

A confidence interval is a range of values, derived from sample data, that is likely to contain the true value of an unknown population parameter with a specified level of confidence.

Sample Size

The number of participants, observations, or data points collected in a study, important for ensuring the statistical validity and reliability of the research findings.