Superior analysts are encouraged to concentrate their efforts in "middle tier" stocks.This is recommended because
A) it works to minimize taxes for the client.
B) only individuals deal in the middle tier stocks.
C) prices may not adjust quite as rapidly for middle tier stocks as they do in the top tier; therefore, the chances of temporarily undervalued securities are greater.
D) it includes companies too small to be considered by institutions.
E) technical analysts never look at "middle tier" stocks.

Question

Quizplus · Accepted Answer

Middle tier stocks may not have as rapid price adjustments, making it more likely for temporary undervaluation opportunities. This is where superior analysts are encouraged to concentrate their efforts. The other choices are not necessarily true or relevant.

Superior Analysts Are Encouraged to Concentrate Their Efforts in "Middle