From 1988 to 2002, the Wall Street Journal compared stock returns made by profes

Question

From 1988 to 2002, the Wall Street Journal compared stock returns made by professional analysts to stocks selected by randomly throwing a dart at a list of all stocks trading on the NYSE. These returns were also compared to the return on a stock market index (the S&P 500 Index). The result of this contest was

professional analysts beat both random stocks and the market index about 75% of the time, which suggests that fees consumers pay for professional advice are justified most of the time.

the collection of random stocks beat both the professional analysts and the market index about 75% of the time, which suggests that fees consumers pay for professional advice are not justified.

professional analysts beat both random stocks and the market index about 90% of the time, which suggests that fees consumers pay for professional advice are justified.

professional analysts beat both random stocks and the market index about 75% of the time, which suggests that fees consumers pay for professional advice are justified most of the time.

Explanation / Answer

The correct answer is option (A).

The professional analysts beat both random stocks and the market index about 75% of the time, which suggests that fees consumers pay for professional advice are justified most of the time.

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