The Weak Form of the Efficient Markets Theory Contends That

question 11

Multiple Choice

The weak form of the efficient markets theory contends that

• A) any publicly available information is useless in predicting future price movements.
• B) past price performance is useless in predicting future price movements.
• C) price movements are not random but follow a general trend over a period of time.
• D) past performance can help determine the general direction of future price movements.

Recognize the various physiological and psychological drives that influence human behavior.

Apply motivational theories to understand the behavioral responses to environmental stimuli.

Distinguish between different motivational theories (drive theory, homeostatic theory, expectancy theory).

Understand the role of physiological signals in regulating appetite and satiety.

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Definitions:

Outgroup

A group of people perceived as distinctly different from or outside of one's own in-group, often leading to biases or discrimination.

Ingroup

“Us”—people with whom we share a common identity.

Just-world Phenomenon

The belief that the world is inherently fair, and thus people get what they deserve and deserve what they get.

Bystander Effect

A social psychological phenomenon in which individuals are less likely to offer help to a victim when other people are present, under the assumption that someone else will take action.