Shawn Earned an Average Return of 14

question 44

Essay

Shawn earned an average return of 14.6 percent on his investments over the past 20 years while the S&P 500,a measure of the overall market,only returned an average of 13.9 percent.Explain how this can occur if the stock market is efficient.

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Definitions:

Vervet Monkeys

A species of Old World monkey known for their complex social systems and behaviors, often studied in behavioral ecology and psychology.

Observational Learning

Learning that occurs through observing the behaviors of others and the outcomes of those behaviors, rather than through direct experience.

Humpback Whales

Humpback whales are large marine mammals known for their impressive acrobatic behaviors, distinctive body shape, and complex songs used for communication and mating.

Rhesus Macaque

A species of monkey commonly used in medical and biological research studies due to its close genetic relation to humans.