The Weak Form of the Efficient Market Hypothesis Asserts That

question 26

Multiple Choice

The weak form of the efficient market hypothesis asserts that

• A) stock prices do not rapidly adjust to new information contained in past prices or past data
• B) future changes in stock prices cannot be predicted from past prices
• C) technicians cannot expect to outperform the market
• D) a and b
• E) b and c

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Definitions:

Possible Selves

Images of what the self might become in the future.

Trait Self-Esteem

The enduring sense of worth or value that one attributes to oneself as a consistent aspect of their personality.

Self-Verification

The desire to be understood and recognized by others according to one's firmly held beliefs and feelings about oneself.

Self-Handicapping

A cognitive strategy by which people avoid effort in the hopes of keeping potential failure from hurting self-esteem.