One student in the class of Exercise 25 claims to have found a winning strategy. He watches

Question:

One student in the class of Exercise 25 claims to have found a winning strategy. He watches a cable news show about investing and during the show throws his darts at the pages of the Journal. He claims that of 200 stocks picked in this manner, 58% were winners.

a) What do you think of his claim? Explain.

b) If there are 100 students in the class, are you surprised that one was this successful? Explain.

Stocks
Stocks or shares are generally equity instruments that provide the largest source of raising funds in any public or private listed company's. The instruments are issued on a stock exchange from where a large number of general public who are willing...