If Asset Markets Are Driven by the "Animal Spirits" of Investors

question 11

Multiple Choice

If asset markets are driven by the "animal spirits" of investors, then

• A) those markets reflect rational behaviour.
• B) those markets reflect irrational behaviour.
• C) the efficient markets hypothesis is correct.
• D) the stock market exhibits informational efficiency.

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Definitions:

Residence Patterns

The societal norms and customs that dictate where individuals or groups live, often based on kinship, marital status, or gender roles.

Biological Consequences

The effects or outcomes that result from processes or changes in the biological systems.

Incest Taboo

A cultural and social prohibition against sexual relationships or marriage between close relatives or family members.

Incest

Marriage or sexual intercourse between people who are too closely related, usually parent and child and sibling relations at a minimum.