Which of the Following Statements Is NOT Accurate

question 44

Multiple Choice

Which of the following statements is NOT accurate?

• A)financial markets are forward-looking
• B)new surprise information about firms changes the value of their stock
• C)if stocks did well last quarter they are likely to do well this quarter
• D)a random walk is a sign of market efficiency
• E)interest rate differentials between two countries are reflected in exchange rate movements

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Definitions:

Complex Pattern

A configuration of elements that are intricately entwined, making it complicated to understand, predict, or analyze.

Perception

The process by which individuals organize and interpret their sensory impressions in order to give meaning to their environment.

Induced Movement

The perception of motion caused by certain visual cues, leading stationary objects to appear as if they are moving.

Moon Illusion

A perceptual phenomenon in which the Moon appears larger near the horizon than it does while higher up in the sky.