Researchers Have Found That Over Long Periods of Time

question 26

Multiple Choice

Researchers have found that over long periods of time

• A)the difference between the returns on large company and small company stocks is due solely to the difference in their risks.
• B)strong form market efficiency exists,without argument.
• C)large company stocks tend to outperform small company stocks.
• D)arbitrage has no effect on market efficiency.
• E)value stocks may outperform growth stocks on a risk-adjusted basis but no firm conclusion can be drawn.

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Definitions:

Adult Authority

The power or right of adults, often parents or teachers, to make decisions and enforce rules for children or younger individuals.

Instrumental Aggression

Aggressive behavior used as a means of achieving a goal.

Hostile Attribution Bias

The inclination to perceive the actions of others as being driven by malicious intent, even when those actions are unclear or harmless.

Aggressively

A term describing actions or behaviors carried out with force and determination, often without regard for others.