The Weak Form of the Efficient-Market Hypothesis Contradicts

question 54

Multiple Choice

The weak form of the efficient-market hypothesis contradicts

• A) technical analysis but supports fundamental analysis as valid.
• B) fundamental analysis but supports technical analysis as valid.
• C) both fundamental analysis and technical analysis.
• D) technical analysis but is silent on the possibility of successful fundamental analysis.

Recognize the role of heuristics in decision making, including their benefits and drawbacks.

Identify various behavioral biases and their effects on economic decision making.

Understand the significance of impulse buying and its impact on economic models.

Comprehend the concept of System 1 and System 2 in the brain and their roles in decision making.

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Definitions:

Healthy Life

A state of complete physical, mental, and social well-being, not merely the absence of disease or infirmity.

Absurd

A term used in existential philosophy to describe the conflict between the human tendency to seek inherent value and meaning in life and the human inability to find any in a chaotic, irrational universe.

Meaning

The significance, purpose, or understanding associated with language, symbols, or events.

Nihilists

Persons who believe in nihilism, the philosophical viewpoint that denies or lacks belief in any or all of the reputedly meaningful aspects of life.