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In a Competition of Financial Analysts Vs

Question 84

Multiple Choice

In a competition of financial analysts vs. throwing a dart to choose stocks, according Burton Malkiel, financial analysts came out ahead due to all of the following reasons EXCEPT:


A) it considered only stock prices, not dividends
B) investors that followed the contest were influenced to purchase the stocks recommended by the analysts
C) failure of the Efficient Markets Hypothesis
D) part of the return for the analysts resulted from compensation for the higher risk of the stocks chosen

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