Answer:
Lucky event
Explanation:
In the investments market a true measure of market efficiency is to get a track record of positive outcome from investors over time.
The lucky event problem occurs when an investor makes a profit on investment not because of how efficient a market is or by a logical procedure, but rather by chance.
In the given scenario Keyes put all his money in one stock that doubled in 3 months.
However this was not replicated among other investors who made similar vets on other stocks and lost.
This is an exams of lucky event problem in determining market efficiency.
Answer: An availability bias
Explanation: An availability bias is simply defined as the tendency for people to base their judgments on information that is easier to recall than on those that require extensive use of memory. It is also given as an unrecognized tendency of decision-makers to give preference to recent information, vivid images that evoke emotions, and specific acts and behaviors that they personally observed. Albert by asking questions that come to his mind easily as a result of inadequate preparation which leads to his hiring poor quality employees indicates an availability bias.
Answer:
Say's law in economics is the ability to purchase something depends on the ability to produce and thereby generate income.
Answer:
Implied warrenty
Explanation:
The sale itself constituted an implied warranty of merchantability but not an express warranty or a warranty of fitness for a particular purpose.
Answer:
C. Spreading risk by investing your money in a variety of funds and investment options.
Explanation:
To “diversify” a portfolio is to invest in a variety of assets as opposed to focusing on one type of asset. To diversify is to invest in different classes of assets to minimize the risks associated with investing.
Diversification minimizes risk by spreading it in the different classes of assets. Should returns from one class of assets be unfavorable, the losses incurred will be neutralized by positive returns from the other assets.
