Independent Deviations from Rationality

question 61

Multiple Choice

Independent deviations from rationality:

• A)only exist when the overall market is overvalued.
• B)prevent the markets from ever being efficient.
• C)can create an efficient market.
• D)are the actions taken by rational arbitrage traders.
• E)do not exist in an efficient market.

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Definitions:

Polygenetic

Involving or determined by multiple genes, often relating to the complex traits and variations in organisms.

DNA Segments

Portions of the DNA molecule that carry genetic information; these can encode genes, regulate gene expression, or have structural or unknown functions.

Family-Environment Effect

The impact of the familial setting on an individual's development, behaviors, values, and beliefs, emphasizing the role of upbringing.

Fluid Intelligence

The ability to reason and solve new problems without relying on previously learned information.