The Efficient Markets Hypothesis

question 7

Multiple Choice

The efficient markets hypothesis

• A)assumes that market participants form their expectations adaptively.
• B)applies rational expectations to the pricing of assets.
• C)applies to the stock market, but not to the bond market.
• D)indicates that the stock market is efficient, but not rational.

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Freudian Theory

A psychological theory developed by Sigmund Freud that emphasizes unconscious motivations and conflicts as the basis of human behavior.

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Freudian Theory

A psychological theory developed by Sigmund Freud that emphasizes the influence of the unconscious mind on behavior, and introduces concepts such as the id, ego, and superego.