Which of the Following Is True

question 208

Multiple Choice

Which of the following is true?

• A) Investment in the stock market is a relatively foolproof method for an investor to earn a high rate of return during the next five years.
• B) Current stock prices already reflect information that is known with a high degree of certainty.
• C) Experts are able to predict changes in the direction of the broad stock market indexes with a high degree of accuracy.
• D) While changes in the prices of specific stocks are difficult to predict, it is relatively easy to predict the future direction of the broad stock market.
• E) Both c and d are true.

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Definitions:

Reversible

Capable of returning to an original condition or state, implying change is not permanent.

Self-Esteem

A person's overall subjective emotional evaluation of their own worth or value.

Cognitive Dissonance

The psychological discomfort experienced when holding two or more contradictory beliefs, values, or attitudes, leading to motivation for change to reduce the dissonance.

Boring Task

A monotonous or uninteresting activity that requires completion.