One of the Problems with Investment Advice That Claims You

question 158

Multiple Choice

One of the problems with investment advice that claims you should buy stock in a certain company or sector of the economy is that:

• A) no one else knows such advice.
• B) asset prices likely reflect that information already.
• C) investment advice is not regulated.
• D) sellers know less than buyers in the financial markets.

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Definitions:

Sensorimotor

Pertaining to the body's responses to sensory stimuli and the coordination of sensory and motor activities.

Conservation

The principle that certain physical characteristics (such as volume, mass, or number) remain unchanged, even when their appearance changes, as understood in cognitive development.

Object Permanence

Object permanence is the understanding that objects continue to exist even when they cannot be seen, heard, or otherwise sensed, a key cognitive development in infancy.

Principle

A fundamental truth, law, doctrine, or motivating force, upon which others are based or from which others are derived.