The Only Way for Behavioural Patterns to Persist in Prices

question 20

Multiple Choice

The only way for behavioural patterns to persist in prices is if ________.

• A)markets are not weak form efficient
• B)there are limits to arbitrage activity
• C)there are no significant trading costs
• D)market psychology is inconsistent over time

---

Definitions:

Discipline Principle

A concept in management that emphasizes the importance of enforcing rules and maintaining order within an organization.

Alternative Hypotheses

Hypotheses that suggest there is a statistically significant difference between groups or variables, as opposed to the null hypothesis.

Null Hypothesis

A default hypothesis that assumes no significant difference or effect between groups or variables in a statistical test.

Hypothesis Testing

A method in statistics to decide whether to accept or reject a hypothesis based on sample data, to determine the likelihood that a parameter related to the population is true.