Which of the Following Statements Is the Most Consistent with Evidence

question 49

Multiple Choice

Which of the following statements is the most consistent with evidence provided on the EMH?

• A)It is not clear that the market can be expected to respond positively to unexpected good news.
• B)Anomalies have a great capacity to generate risk-adjusted excess returns for an investor.
• C)Event tests are joint tests of the asset-pricing model used and market efficiency.
• D)Financial managers of small companies should interpret this evidence as an indication that shares of small companies are under-priced and shares of large companies are over-priced.

Understand the effects of intoxication on contract enforceability and the concept of voidable contracts.

Identify legal constraints on contracts including usury, licensing requirements, and unconscionable terms.

Describe the consequences of changes in law on existing contracts.

Recognize the characteristics of severable contracts and their interpretation under contract law.

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Definitions:

Taste Aversions

A learned aversion to consuming certain foods or drinks because they have been associated with an unpleasant sensation or illness.

Nonadaptive

Nonadaptive refers to traits or behaviors that do not improve an organism's chances of survival or reproduction in its environment.

Robert Rescorla

A psychologist known for his work on the involvement of cognitive processes in classical conditioning, particularly the Rescorla-Wagner model.

Fear Response

A primal reaction to perceived danger, involving physiological changes like increased heart rate and adrenaline production, aimed at facilitating a fight or flight reaction.