A Market Decline of 23% on a Day When There

question 54

Multiple Choice

A market decline of 23% on a day when there is no significant macroeconomic event ______ consistent with the EMH because ________.

• A) would be,because it was a clear response to macroeconomic news.
• B) would be,because it was not a clear response to macroeconomic news.
• C) would not be,because it was a clear response to macroeconomic news.
• D) would not be,because it was not a clear response to macroeconomic news.
• E) We cannot tell based on the information given.

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Definitions:

Cortisol

A hormone, released during the body’s response to stress, that increases blood glucose levels and affects the immune response.

Epinephrine (Adrenaline)

A hormone and neurotransmitter involved in the body's fight-or-flight response, increasing heart rate, muscle strength, blood pressure, and sugar metabolism.

Cytokines

These chemical messengers are produced by the body as part of its immune response. These proteins can either promote inflammation or reduce it.

Dopamine

A neurotransmitter and a hormone that serves many functions in the body. As a neurotransmitter, it is involved in several brain processes, including reward systems. Low levels of dopamine production are associated with Parkinson’s disease.