Shouldn't better informed investors be able to profit from the deviations from pricing efficiency caused by noise traders?
What will be an ideal response?
Better informed investors may be able to profit from the deviations from efficiency caused by noise traders. But the longer these deviations persist, the less likely it is that better informed investors will be able to profit.
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If the total money supply is $3 trillion, real GDP is $8 trillion and the price level is 1.5, then the equation of exchange tells us that velocity equals
A) 16. B) 3. C) 0.25. D) 4.
Refer to the table below. To maximize utility, the consumer will buy:
The table below shows the marginal-utility schedules for goods A and B for a hypothetical consumer. The price of good A is $1 and the price of good B is $2. The income of the consumer is $8.
A. 2 A and 3 B
B. 4 A and 2 B
C. 4 B
D. 6 A and 1 B