Individuals Who Continually Monitor the Financial Markets Seeking Mispriced Securities

question 16

Multiple Choice

Individuals who continually monitor the financial markets seeking mispriced securities:

• A) earn excess profits over the long-term.
• B) make the markets increasingly more efficient.
• C) are never able to find a security that is temporarily mispriced.
• D) are overwhelmingly successful in earning abnormal profits.
• E) are always quite successful using only historical price information as their basis of evaluation.
• F) None of the above.

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Definitions:

Social Dominance Orientation

A personal disposition characterized by the desire for one's in-group to dominate and be superior to out-groups.

Mortality

The state or condition of being subject to death; the opposite of immortality.

Worldview

The fundamental cognitive orientation of an individual or society encompassing natural philosophy, fundamental existential and normative postulates, or themes, values, emotions, and ethics.

Social Dominance Orientation

A personality trait which predicts social and political attitudes, characterized by a preference for hierarchy in social settings and dominance over lower status groups.