J. M. Keyes put all his money in one stock, and the stock doubled in value in a matter of months. He did this three times in a row with three different stocks. J. M. got his picture on the front page of the Wall Street Journal. However, the paper never mentioned the thousands of investors who made similar bets on other stocks and lost most of their money. This is an example of the ________ problem in deciding how efficient the markets are.
A) magnitude
B) selection bias
C) lucky event
D) small firm
Correct Answer:
Verified
Q47: Most tests of semistrong efficiency are _.
A)
Q48: According to results by Seyhun, _.
A) investors
Q49: "Active investment management may at times generate
Q50: Even if the markets are efficient, professional
Q51: Assume that a company announces unexpectedly high
Q53: If the daily returns on the stock
Q54: Banz found that, on average, the risk-adjusted
Q55: Among the important characteristics of market efficiency
Q56: The broadest information set is included in
Q57: DeBondt and Thaler (1985) found that the
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