According to the Efficient-Market Hypothesis, Stock Price Changes Reflect

question 76

Multiple Choice

According to the efficient-market hypothesis, stock price changes reflect , but according to Keynes, stock price changes often reflect .

• A)the inventory accelerator; changes in Tobin's q
• B)changes in the real cost of capital; financing constraints
• C)changes in the underlying economic fundamentals; irrational waves of optimism or pessimism
• D)reductions in investment tax credits; the use of historical cost rather than replacement cost in computing depreciation costs

---

Definitions:

Symbolic Interactionism

A sociological perspective that examines how individuals interpret and respond to symbols within their social interactions, shaping their realities.

Human Action

The purposeful behavior or activities of individuals, often studied in economics and sociology to understand decision-making processes and social phenomena.

Praxis

The process by which a theory, lesson, or skill is enacted, embodied, or realized, often in a way that bridges the gap between theory and practice.

Intellectual Convictions

Firmly held beliefs or opinions that are rooted in reasoning and knowledge rather than emotion or personal preference.