Examlex

Solved

High-Frequency Trading Involves Scanning the Latest News and Stock Quotes

question 15

Multiple Choice

High-frequency trading involves scanning the latest news and stock quotes with high-tech computers and using the information to trade stocks very quickly. Because it is highly automated, it happens a thousand times faster than an eye can blink. Though each trade might make a fraction of a penny, it accounts for about two-thirds of the stock market trading. How does this financing trend reflect the efficient markets hypothesis?


Definitions:

Schedule of Reinforcement

A tactic in behavioral psychology determining how and when the occurrence of a desired behavior will be rewarded or punished.

Self-efficacy

Self-efficacy is the belief in one's own ability to accomplish tasks and overcome challenges, influencing motivation and performance.

High Level

Pertains to something that is of a superior or advanced status, complexity, or importance.

Variable Ratio

A reinforcement schedule in which the number of responses required for a reward varies, making the reinforcement unpredictable and often leading to a high and steady rate of response.

Related Questions