Which of the Following Statements Is True of the Strict

question 50

Multiple Choice

Which of the following statements is true of the strict scrutiny approach?

• A) It is used if the classification is partially suspect.
• B) It falls between the minimum and quasi-strict scrutiny approaches.
• C) Classifications need to be permissible to achieve a state interest.
• D) Classifications that are subject to this approach are presumed to be constitutional.
• E) It is applied to cases involving classifications directed at fundamental rights.

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Definitions:

Behavioral Finance

An area of study focusing on how psychological influences and biases affect the financial behaviors of investors and financial markets.

Rational

Characterized by clear, logical thinking, often referring to decision-making that maximizes benefit.

Irrational

Acting without reason or understanding, often defying logical or expected behavior, particularly in economic contexts referring to market participants.

Weak-form Efficient

A form of market efficiency that asserts all past trading information is fully reflected in stock prices, and thus, technical analysis cannot consistently produce excess returns.