James Is Looking for a New Suit for a Job

question 145

Multiple Choice

James is looking for a new suit for a job interview. He is shopping at Smith & Jones, a well-regarded menswear store. While he looks at various styles and uses his smartphone to scan codes, the menswear shopping app provides him with suggestions for shirts, ties, and shoes that would complete the ensemble he needs to make a strong, positive impact at his interview. The ability of the app to provide this information serves to ________.

• A) enrich the shopping experience
• B) annoy James
• C) complicate the shopping experience
• D) use James' data plan
• E) interrupt the shopping experience

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Definitions:

Strong-form Efficiency

A market hypothesis suggesting that prices fully reflect all available information, both public and private, making it impossible for investors to consistently achieve higher returns.

Semistrong-form Efficiency

A hypothesis that asserts the market price of securities already reflects all publicly available information, making it hard to achieve higher returns.

Weak-form Efficiency

A market efficiency theory suggesting that past stock prices and volume data do not affect stock prices and thus cannot predict future stock movements.

Positive-earnings Surprises

Situations where the reported earnings of a company exceed the expected earnings, often leading to a positive reaction in the stock market.