The Efficient Markets Hypothesis Suggests That If an Unexploited Profit

question 27

Multiple Choice

The efficient markets hypothesis suggests that if an unexploited profit opportunity arises in an efficient market

• A)it will tend to go unnoticed for some time.
• B)it will be quickly eliminated.
• C)financial analysts are your best source of this information.
• D)all profits will be eliminated through taxation.

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Definitions:

Social Contagion

The phenomenon where behaviors, attitudes, or emotions spread through groups or societies, akin to the transmission of diseases.

Injunctive Norms

Social norms that define what is perceived as approved or disapproved behavior within a group or society.

Collectivist Cultures

Societies that prioritize the needs and goals of the group over the individual, emphasizing interdependence and community.

Conformity

The act of aligning one's beliefs or behaviors with those of a group, often due to perceived social pressure or the desire for acceptance.