Which of the Following Individuals Is Using Information Outside the Efficient

question 126

Multiple Choice

Which of the following individuals is using information outside the efficient markets hypothesis? Someone who:

• A) has information about the aging U.S. population and expects stock for companies that cater to senior citizens to increase in value.
• B) reads in the newspaper about a merger between two profitable firms and expects the stock prices for these companies to rise.
• C) while auditing a dishonest company realizes that its profit estimates are greatly inflated and immediately sells her stock in the company.
• D) hears a rumor that a top bank may be in trouble, and decides to sell his stock in that company.

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Definitions:

Maladaptive Problem-Solving

Ineffective coping mechanisms that fail to address or worsen a problem.

Self-Efficacy

Someone's conviction in their own skill to perform tasks needed for specific successes.

Blame

Involves assigning responsibility for a fault or wrong, often implying criticism or disapproval.

Benefits of Problem-Solving

The advantages gained from effectively identifying solutions to challenges, which may include improved understanding, creativity, and outcomes.