When Presented with a Message That Is Vague or Confusing

question 32

Multiple Choice

When presented with a message that is vague or confusing, young children frequently

• A) ask the speaker to clarify the message.
• B) do not realize that the message is ambiguous.
• C) are able to understand what the speaker intended.
• D) rephrase the statement in an indirect attempt to get a clarification.

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Definitions:

Future Returns

The projected earnings or losses on an investment over an upcoming period.

Efficient Markets Hypothesis

A theory that asserts that financial markets are "informationally efficient", meaning that prices of securities fully reflect all available information at any point in time.

EMH

Efficient Market Hypothesis, a theory that suggests all available information is already reflected in stock prices, hence making it difficult to achieve consistently higher returns.

Geometric Average

The geometric average is a method of calculating the mean that mitigates the impact of extreme values in a data set, commonly used in calculating investment returns.