John Stossel's Dart-Throwing Experiment Showed That

question 265

Multiple Choice

John Stossel's dart-throwing experiment showed that:

• A) picking stocks at random can outperform the stock picks of major Wall Street experts.
• B) Wall Street experts have inside information, which makes beating their stock picks difficult.
• C) companies with longer names are likely to outperform market averages.
• D) economic theory regarding the stock market is flawed.

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Definitions:

Investors

Individuals or institutions that allocate capital with the expectation of receiving financial returns.

SEC

The Securities and Exchange Commission, a U.S. government agency responsible for regulating the securities markets and protecting investors.

Short Positions

An investment strategy where an investor sells a security they do not own, betting that its price will decrease.

Futures Contract

An agreement to buy or sell a specified quantity of a commodity or financial asset at a predetermined price at a specified future date.