A. Suppose that you have just read in a reputed journal that investment advisors are predicting a boom in oil stocks because an oil shortage is developing. Should you proceed to withdraw all your hard-earned savings from the bank and invest it in oil stock? Explain your action.

B. Suppose that your broker phones you with a hot tip to buy stock in the Ahmed Feet corporation (AFC) because it has just developed a product that is completely effective in curing athlete’s foot. The stock price is sure to go up. Should you follow this advice and buy AFC stock? Explain your action.

Answer rating: 100% (QA)

A Investing in oil stocks solely based on the prediction of an oil shortage mentioned in a reputed journal is a risky decision Here are a few reasons why withdrawing all your savings from the bank and ... View the full answer