People Who Accept the Efficient Markets Hypothesis Should

question 55

Multiple Choice

People who accept the efficient markets hypothesis should:

• A) buy a large number of stocks from different companies and hold them for a long period.
• B) buy a small number of stocks from several companies, selling the stocks whose price has fallen and keeping the rest.
• C) buy stocks only at a low price and sell them when their prices have increased by more than the market average.
• D) constantly buy and sell stocks to avoid the risk of large price swings.

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Definitions:

Sustainability

The ability to maintain or improve certain processes or states indefinitely, often referring to environmental, economic, and social well-being.

Environmental Activists

Individuals or groups who actively promote the protection of the environment and advocate for policies or practices that minimize harm to natural ecosystems.

Tragedy Of The Commons

A situation in which individuals act in their own interest and deplete shared resources, leading to long-term collective loss.

Common Good

This concept refers to shared benefits or interests that are advantageous for all members of a given community or society.