Tradition and Authority Can Be Useful Sources of Knowledge,but Relying

question 7

True/False

Tradition and authority can be useful sources of knowledge,but relying on them exclusively can be risky.

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Definitions:

Financial Markets

Venues where traders buy and sell assets such as stocks, bonds, currencies, and derivatives.

Weak Form

In financial market theory, this term refers to the hypothesis that asset prices fully reflect all historical price information, arguing that past price movements are not predictive of future prices.

Market Efficiency

A concept describing the extent to which stock prices reflect all available, relevant information, making it impossible to consistently achieve higher returns.

Semi-strong Form

A form of the Efficient Market Hypothesis that asserts all public information is reflected in the stock prices.