Chloe Talked to Several Stockbrokers and Made the Following Conclusions

question 5

Multiple Choice

Chloe talked to several stockbrokers and made the following conclusions.Which,if any,of Chloe's conclusions are correct?

• A)It is relatively easy to reduce firm-specific risk by increasing the number of companies one holds stock in.
• B)Stock prices,even if not exactly a random walk,are very close to it.
• C)Some people have made a lot of money in the stock market by using insider information,but these cases are not contrary to the efficient markets hypothesis.
• D)All of Chloe's conclusions are correct.

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Definitions:

Expert

An individual with a high level of knowledge, skill, or expertise in a particular area or field, often recognized by peers and society.

Trustworthy

Describes someone who is reliable, honest, and can be depended on to act with integrity.

Speaker

A person who speaks or delivers a message in a public context, such as presentations or speeches.

Central-Route Processing

A cognitive process in persuasive communication where the audience is influenced by the message's content and logic, leading to more durable attitude change.