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:

Variable Manufacturing Overhead

Costs related to manufacturing that fluctuate with the level of production output.

Direct Labor-Hours

The entire sum of hours clocked by employees who are directly involved in product creation.

Labor Rate Variance

The difference between the actual cost of labor and the expected (or standard) cost.

Labor Standards

Benchmarks or criteria set for the amount of time and effort required to perform tasks efficiently and effectively.