If your broker has been right in her five previous buy and sell recommendations, you should continue to listen to her advice. Is this statement true or false?
(a) False, although your broker has done well in the past, efficient market theory suggests that she has probably been lucky
(b) True, for your broker to be right five times in a row, she must have superior market information
(c) False, although your broker has done well in the past, rational market theory suggests that she has probably been lucky
(d)True, brokers often have inside information that is generally not available to the public. You should listen to her and profit from her inside knowledge
(d)True, brokers often have inside information that is generally not available to the public. You should listen to her and profit from her inside knowledge
Explanation:
A broker is a person who has knowledge and expertise in his field of tradings and takes his commission for the services provided as these brokers also tend to have inside information and the success of the broker for the past five years proves this fact.
Most of them typically have a formal license and proper training. Most of them are flexible and do dealing with face to face.
