If Financial Markets Were Inefficient

question 46

Multiple Choice

If financial markets were inefficient,

• A)all investors would outperform the stock market
• B)prices would indicate the proper valuation of securities
• C)prices would adjust rapidly
• D)some investors may consistently outperform the market

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Definitions:

James Marcia

A developmental psychologist known for his work on adolescent identity formation and the Identity Status Interview method.

Identity Statuses

The various stages of development an individual goes through in the process of forming a stable sense of identity.

Delinquent Behavior

Actions that violate the norms of society or the laws of the land, often associated with juveniles.

Identity Achievement

An identity status that characterizes those who have explored alternatives and have developed commitments.