Which Three of the Following Are Implications of the Efficient

question 29

Multiple Choice

Which three of the following are implications of the efficient market hypothesis (EMH) for companies?

• A) Large quantities of new shares can be sold without moving the price.
• B) Signals from price movements should be taken seriously.
• C) The timing of security issues must be fine- tuned.
• D) Focus on substance, not on short- term appearances

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Definitions:

Conditioned Taste Aversions

A learned aversion to a particular food or taste, often resulting from an illness or negative experience associated with that food.

Observational Learning

Learning that occurs through observing the behavior of others, also known as social learning or modeling, where individuals emulate or avoid behaviors demonstrated by others.

Negative Reinforcement

A type of conditioning where an undesirable stimulus is removed to increase a behavior.

Driving Privileges

The rights or permissions granted to an individual by a governing body to operate a motor vehicle on public roads, typically after passing certain tests and meeting specific criteria.