Consider a Game That Involves the Tossing of a Fair

question 59

Multiple Choice

Consider a game that involves the tossing of a fair coin.The winner is the individual who calls the outcome correctly, the loser obviously called the wrong outcome.The theory of efficient markets would say:

• A)Part of the key information is to know the outcomes of the previous tosses.
• B)The key information to know are the probabilities of the outcomes and the expected payoff.
• C)Part of the key information is to know the skill of the person you are playing against.
• D)Outcomes of events that require luck cannot be evaluated.

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