Question

Mr. Jones put all his money in one stock, and the stock tripled in value in a matter of months. He did this four times in a row with four different stocks. Mr. Jones got his picture on the front page of the Wall Street Journal. However, the paper never mentioned the thousands of investors who made similar bets on other stocks and lost most of their money. This is an example of the problem in deciding how efficient the markets are. magnitude selection bias lucky event small firm

Answer 1

This is an example of the selection bias problem in deciding how efficient the markets are.