Research on the Weak Form of the Efficient Market Hypothesis

question 11

Multiple Choice

Research on the weak form of the efficient market hypothesis suggests that:

• A)stock prices are independent over time.
• B)past trends cannot be used to predict the future.
• C)charting and technical analysis have limited value.
• D)More than one of the above

---

Definitions:

Reinforcement Effect

The strengthening of a behavior due to the application of a stimulus or reward following that behavior.

Quantity of Reinforcement

The amount of reinforcement provided or required to modify or sustain a behavior.

Bolles

Bolles typically references Robert C. Bolles, a psychologist known for his research in learning, motivation, and fear. He proposed the theory of Species-Specific Defense Reactions (SSDRs), explaining how organisms respond to threatening stimuli.

Little Albert

Refers to a famous psychological experiment by John Watson, demonstrating how phobias can be conditioned in humans.