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Business, 26.03.2020 23:43 joellianamikhai3123

Basic finance. After combing through the data, you have noticed that firms hiring Fishergraduates earn average abnormal returns of +3% per year over the next few years. Youare convinced that this is a genuine profit opportunity and so have decided to trade on it. You have $10,000 to invest and two options: (1) invest all $10,000 in one company thathas just hired a Fisher graduate; (2) invest $1,000 in each of ten companies that have justhired Fisher graduates. Which choice is preferable, or does it not matter?

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