14. If markets follow semi-strong form efficiency, and you enter a stock picking
ID: 2716112 • Letter: 1
Question
14. If markets follow semi-strong form efficiency, and you enter a stock picking game with no transaction costs, which of the following has the greatest chance of winning the contest by having the highest total value of investments at the end? (a) performing careful research before selecting 10 companies from different industries (b) putting everything in a single stock with ticker symbol matching your mother's initials (c) picking 10 stocks based on past results (i.e., picking stocks that have outperformed the market) (d) all of the above have the same chance of winning
why choose B?
Explanation / Answer
Why choose B means putting everything in a single stock with ticker symbol matching your mother's initials,
here putting single stock to all companies so if we get profit in one single stock you will get return in another single you will loose you can bear with previous which you earn.
Related Questions
Navigate
Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.