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:

Preferential Consideration

A practice where certain applicants are given priority during hiring or promotion processes, often based on specific criteria like diversity goals or veteran status.

External Supply

The process of obtaining goods, services, or resources from outside the organization to fulfill its needs or operational requirements.

Professional Associations

Professional associations are organizations seeking to further a particular profession, protect the interests of its members, and maintain standards of practice and ethics.

Mass Customization

A manufacturing and marketing strategy that combines mass production's efficiency with the ability to tailor products to individual customer preferences.