In a Competition of Financial Analysts Vs

question 100

Multiple Choice

In a competition of financial analysts vs. throwing a dart to choose stocks, according Burton Malkiel, financial analysts came out ahead due to all of the following reasons EXCEPT:

• A)it considered only stock prices, not dividends
• B)investors that followed the contest were influenced to purchase the stocks recommended by the analysts
• C)failure of the Efficient Markets Hypothesis
• D)part of the return for the analysts resulted from compensation for the higher risk of the stocks chosen