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:

Secretory

Pertaining to the secretion process, where substances are produced and released by cells or glands in the body.

Follicular

Pertaining to the ovarian follicles, where egg cells develop; also refers to the first phase of the menstrual cycle.

Menstrual Cycle

The regular natural change that occurs in the female reproductive system, making pregnancy possible.

Ovulation

The phase of a female's menstrual cycle in which an egg is released from the ovary, making it available for fertilization.