Which of the Following Is a Behavior Inconsistent with the Efficient

question 98

Multiple Choice

Which of the following is a behavior inconsistent with the Efficient Markets Hypothesis?

• A)diversification of one's portfolio
• B)avoiding active trading of stocks
• C)holding onto a losing stock while being more likely to sell a stock that has increased in value
• D)the purchase of a stock index fund

---

Definitions:

Workarounds

Informal solutions or methods used to overcome problems or limitations in procedures or systems.

Normal Process

a standard or usual procedure followed in a system or organization to achieve a specific goal or function.

Desired Result

The specific outcome or achievement that a person or organization aims to attain through various actions or strategies.

Illegitimate Political Activities

Actions within an organization that are unethical, unauthorized, or unacceptable, aimed at achieving personal gain or influencing power dynamics.