The Efficient Markets Hypothesis Explains the Fact That the Stock

question 44

Multiple Choice

The efficient markets hypothesis explains the fact that the stock picks of some investment analysts earn returns greater than broad-based market indexes as resulting from

• A)the superior insight of these analysts.
• B)the ability of these analysts to exploit loopholes in the tax laws.
• C)the inside information these analysts possess.
• D)chance.

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Definitions:

Leader Punishment Behaviour

The leader’s use of reprimands or unfavorable task assignments and the active withholding of rewards.

Social-Emotional

Relating to the complex interplay of emotional and social aspects of one's experience and behavior.

Position Power

The authority and influence someone has in an organization due to the position they hold, rather than personal attributes.

Fiedler

A reference to Fiedler's Contingency Theory, proposing that effective leadership is determined by the match between a leader's style of interacting with subordinates and the degree to which the situation gives control to the leader.