If the Financial Markets Were Not Efficient

question 15

Multiple Choice

If the financial markets were not efficient,

• A)all investors would profit
• B)prices indicate the proper valuation of securities
• C)prices would adjust rapidly
• D)an investor may consistently outperform the market

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Definitions:

Cultural Differences

Variabilities in norms, values, beliefs, and practices among people from different backgrounds or communities.

Corporate Grapevine

An informal communication network within a business organization, through which information and rumors circulate.

Instant Messaging

A form of real-time text communication between two or more people over the internet or another network.

Emotional Contagion

the phenomenon of having one person's emotions and related behaviors directly trigger similar emotions and behaviors in other people.