In an Efficient Market, Both Expected and Unexpected News Should

question 120

True/False

In an efficient market, both expected and unexpected news should cause stock prices to move up or down.

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Definitions:

Rules of Society

The norms, customs, and laws that regulate individual and collective behavior within a community or society.

Insanity Defense

A legal defense where the defendant claims they were not responsible for their actions due to psychiatric illness at the time of the crime.

Chronically Insane

A term no longer widely used, historically referring to individuals with long-term, severe mental health conditions.

Posttraumatic Stress Disorder

A psychiatric disorder that can occur in people who have experienced or witnessed a traumatic event, characterized by flashbacks, severe anxiety, and uncontrollable thoughts about the event.