Jenna receives an investment newsletter that recommends she invest in a stock that has doubled the return of the S&P 500 in the last two months. It also claims this stock is a "safe bet" for the future. Which of the following statements is correct regarding this information?
A) This investment newsletter is most likely correct because they most likely have some special knowledge about the stock.
B) The investment newsletter contains contrary information since the stock must be a high risk and therefore cannot also be a "safe bet."
C) It is common for individual stocks to double the return of the S&P 500 and still be a "safe bet."
D) None of these statements are correct.
Correct Answer:
Verified
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