The Number and Availability of Discount Brokers Has Grown Rapidly

question 15

Multiple Choice

The number and availability of discount brokers has grown rapidly since the mid-1970s. The efficient markets hypothesis predicts that people who use discount brokers

• A)will likely earn lower returns than those who use full-service brokers.
• B)will likely earn about the same as those who use full-service brokers,but will net more after brokerage commissions.
• C)are going against evidence suggesting that full-service brokers can help outperform the market.
• D)are likely to outperform the market by a wide margin.

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Definitions:

Hawthorne Study

A series of experiments conducted in the 1920s and 1930s that examined how different work conditions affected employee productivity, highlighting the importance of social factors and employee attention.

Motivated

The state of being driven and encouraged to act or engage in certain activities based on either intrinsic or extrinsic factors.

Social Needs

Fundamental requirements that encourage individuals to form connections and interact with others.

Employee Performance

The record of outcomes achieved and tasks completed by an employee in their job role.