If each of the approximately 320,000 securities and financial service agents in the United States bet on whether the market would go up or down for each of the next 10 years by flipping a coin, we would expect that approximately 312 agents would have been right 10 years in a row. This example suggests that:
A) it is easy to beat the market averages.
B) famous investors like Warren Buffett may have merely been lucky.
C) there are above-normal profit opportunities in the stock market.
D) All of the answers are correct.

Question

Quizplus · Accepted Answer

The example shows that even if a large number of people make bets on the stock market, a few of them would predict the trend correctly each year for ten years in a row by sheer chance. This suggests that it is not easy to beat the market averages by relying on random guesses or luck. Therefore, option A and C are incorrect. Choice D is also incorrect as it is not mentioned in the example whether famous investors like Warren Buffett were lucky or not.

If Each of the Approximately 320,000 Securities and Financial Service