Negative Beliefs Can Be So Strong That They Become Self-Fulfilling

question 104

True/False

Negative beliefs can be so strong that they become self-fulfilling prophesies.

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Definitions:

SEC

The Securities and Exchange Commission, a U.S. regulatory agency responsible for enforcing federal securities laws and regulating the securities industry.

After-tax Returns

The profit realized from an investment after all applicable taxes have been subtracted.

Portfolio Turnover

A measure of how frequently investments are bought and sold within a portfolio during a specified period of time.

Malkiel's Study

An academic research work that analyzes market trends, investor behavior, and the efficiency of financial markets, particularly known for supporting the random walk hypothesis.