Which of the Following Is NOT an Underlying Assumption of the Existence

question 29

Multiple Choice

Which of the following is NOT an underlying assumption of the existence of an efficient market?

• A)A large number of rational, profit-maximizing investors exist.
• B)Information is costless and widely available to market participants.
• C)Information arrives at predetermined times.
• D)Investors react quickly and fully to new information.

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Definitions:

Social-Cultural Perspective

An approach in psychology that examines how social, cultural, and environmental variables influence individuals' behavior and thought processes.

Group Membership

Belonging to a social group and identifying as a member of it, which can influence one's behavior, attitudes, and perceptions of others.

Individual Attitudes

Personal evaluations, feelings, or opinions toward objects, people, or events, which can influence behavior and choices.

Psychodynamic Perspective

A psychological approach that emphasizes unconscious processes and past conflicts as influencing current behaviors and mental states.