One Important Implication of the Efficient Markets Hypothesis Is That

question 8

Multiple Choice

One important implication of the efficient markets hypothesis is that:

• A) investors should hold a diversified portfolio and avoid active trading.
• B) investors can benefit by engaging in day trading.
• C) investors should trade actively help to ensure the highest overall gain in their portfolios.
• D) all of the above.

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Definitions:

Variable-interval

A schedule of reinforcement where a response is rewarded after an unpredictable amount of time has passed, in behaviorism.

Positive Reinforcement

A process by which the likelihood of a behavior's occurrence is increased through the addition of a desirable stimulus immediately following the behavior.

Productivity Goal

An objective set to achieve a specific level of output or efficiency in work or other activities, aiming to optimize performance.

Negative Reinforcers

Stimuli that, when removed after a behavior, increase the likelihood that the behavior will occur again in the future.