Exclusive Rights of Badger Distributors: Trading Views of Three Equity Traders

Their Reactions to News on Badger Distributors, Inc.

Prev Question Next Question

Question

Myra Addison, Luz Bazo, and Erik Jenss, three equity traders, are having a quick lunch around the corner from the exchange. Bazo's cell phone beeps, letting him know that he has a text message. He reads the message, then quietly tells Addison and Jenss that Badger Distributors, Inc. has just won exclusive rights to supply all major league baseball parks with uniforms for hot dog/soda vendors. Bazo stands up, gathers his unfinished lunch, and announces, "I'm going back to the exchange to trade." Jenss calmly eats his sandwich and says, "There's plenty of time to trade." Addison shakes her head and mutters, "It's too late already."

Based on their reactions to the news on Badger Distributors, which statement best identifies the trading view of these three traders?

Answers

A. Addison uses fundamental analysis, Bazo is a technician, and Jenss supports the efficient market hypothesis.

B. Addison and Jenss both use fundamental analysis and Bazo is a technician.

C. Addison and Jenss both use fundamental analysis and Bazo supports the efficient market hypothesis.

D. Addison supports the efficient market hypothesis, Bazo uses fundamental analysis, and Jenss is a technician.

Show Answer

Explanations

Click on the arrows to vote for the correct answer

A. B. C. D.

One major difference between technicians, fundamental analysis traders, and those who support the efficient market hypothesis is the speed at which they believe the market reflects new information, The order, from slowest to fastest, is: technical analysis (Jenss), fundamental analysis (Bazo), and efficient market hypothesis

(Addison).

Prev Question Next Question