Data from More Than 136 Studies Support the Conclusion That

question 101

Multiple Choice

Data from more than 136 studies support the conclusion that _______ were more accurate than __________.

• A) clinical judgments; statistical predictions
• B) statistical predictions; clinical judgments
• C) clinical judgments; psychometric scores
• D) psychometric scores; statistical predictions

---

Definitions:

Market Efficiency

A financial theory stating that asset prices fully reflect all available information, making it impossible to consistently achieve higher returns.

Efficient Capital Market

Market in which security prices reflect available information.

Security Prices

The cost or price of financial instruments such as stocks, bonds, and derivatives, determined by market supply and demand.

Compound Return

The process by which an investment grows over time as earnings from both the principal and the accumulated earnings from preceding periods.