According to the Efficient Markets Hypothesis,better-Than-Expected News About a Corporation

question 95

Multiple Choice

According to the efficient markets hypothesis,better-than-expected news about a corporation will

• A) have no effect on it's stock price.
• B) raise the price of the stock.
• C) lower the price of the stock.
• D) change the price of the stock in a random direction.

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Definitions:

Conditioned Fear Response

A learned fear reaction to a previously neutral stimulus that has been repeatedly presented along with an aversive stimulus.

Id

In psychoanalytic theory, the part of the mind that is the source of instinctive impulses that demand satisfaction.

Pleasure Principle

The driving force of the id that seeks immediate gratification of all desires, wants, and needs.

Secondary Process Thinking

A concept in psychoanalytic theory referring to the rational and conscious thought processes guided by reality.