The Efficient Markets Hypothesis States

question 70

Multiple Choice

The Efficient Markets Hypothesis states

• A)markets tend to evolve to low transactions costs and speedy execution of orders.
• B)current asset prices (e.g. exchange rates) fully reflect all the available and relevant information.
• C)current exchange rates cannot be explained by such fundamental forces as money supplies, inflation rates and so forth.
• D)none of the above

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Definitions:

Cultural Influences

The impact of societal norms, values, beliefs, and practices on an individual's behavior, perceptions, and decisions.

Social Influences

The effects that the actions, behaviors, and opinions of others have on our own.

Buying Behavior

The decision processes and acts of individuals or groups in selecting, purchasing, and using goods or services to satisfy needs and desires.

Interpersonal Determinant

Factors related to social interactions and relationships that influence an individual's behavior or decisions.