The Term "Independent Deviations from Rationality" Implies That

question 38

Multiple Choice

The term "independent deviations from rationality" implies that:

• A)irrational investors are absent from an efficient market.
• B)arbitrage traders act independent of each other.
• C)markets must be inefficient.
• D)irrational investors behave differently from one another.
• E)arbitrage traders act together to offset the actions of rational investors.

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Definitions:

Convergent Stress

A tectonic plate stress that occurs when two plates move toward each other, potentially causing mountains or volcanoes.

Tensional Stress

Stress that occurs when forces act in opposite directions to stretch an object or material, common in geology and materials science.

Alternating Pressure

A method often used in medical beds and surfaces to prevent bedsores, where the pressure is periodically distributed and then relieved.

Displaced

Moved or forced out of a usual or proper place, often used to describe people who are forced to leave their homes.