Which Theory Offers an Explanation for the Crash of a Stock

question 40

Multiple Choice

Which theory offers an explanation for the crash of a stock market one day and its rebound the next?

• A) Market efficiency theory
• B) Random walk theory
• C) Convergence trading
• D) Prospect theory

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Definitions:

Agreeableness

A personality trait characterized by compassion and cooperativeness towards others.

Behavioural Plasticity

The capacity of an organism to modify its behavior based on experience or environmental changes.

Personality Characteristic

Innate or acquired traits that define an individual's behavior, thinking patterns, and emotional reactions, contributing to their unique personal identity.

Workplace Deviance

Behaviors exhibited by employees that violate organizational norms, policies, or ethical standards.