Which of the Following Is Evidence of Irrationality in Financial

question 47

Multiple Choice

Which of the following is evidence of irrationality in financial markets?

• A) random walk
• B) high volatility
• C) bubbles
• D) none of the above

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Definitions:

Conditioned Taste Aversion

A learned response where an individual avoids a food after a single, often negative, experience, illustrating how some associations can be formed with just one instance.

Coyotes

Medium-sized canids native to North America, known for their adaptability to diverse environments and opportunistic feeding habits.

Sheep

Domesticated ruminant animals, typically kept as livestock for their wool, meat, and milk.

Classical Conditioning

A learning process that occurs when two stimuli are repeatedly paired; a response that is at first elicited by the second stimulus is eventually elicited by the first stimulus alone.