Which of the Following Is a Behavior Inconsistent with the Efficient

question 58

Multiple Choice

Which of the following is a behavior inconsistent with the efficient markets hypothesis?

• A) diversification of one's portfolio
• B) avoiding active trading of stocks
• C) holding onto a losing stock while being more likely to sell a stock that has increased in value
• D) the purchase of a stock index fund

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Definitions:

Athletic Ability

Refers to the combination of qualities such as strength, agility, speed, and endurance that contributes to an individual's competency in sports or physical activities.

Unpacking

The process of analyzing or breaking down complex concepts into simpler, more understandable components.

White Privilege

The societal advantages that benefit people identified as white beyond what is commonly experienced by non-white people under the same social, political, or economic circumstances.

Biological Determinism

Biological Determinism is the belief that human behavior and characteristics are solely determined by genetics and biological factors, disregarding the influence of environment and culture.