Five of the last 6 stocks your investment adviser recommended have outperformed the market. You therefore believe that your adviser will be right 5 out of every 6 times. This belief is based on the:

Question

Quizplus · Accepted Answer

The belief that the investment adviser will be right 5 out of every 6 times is based on the law of small numbers, which is the expectation that a small sample size will represent the larger population with accuracy. However, this belief may not be accurate as the success rate of the adviser's recommendations may vary over time and may not necessarily follow a consistent pattern.

Five of the Last 6 Stocks Your Investment Adviser Recommended