The Efficient Market Hypothesis

question 10

Multiple Choice

The efficient market hypothesis

• A) is based on the assumption that prices of securities fully reflect all available information.
• B) holds that the expected return on a security equals the equilibrium return.
• C) both A and B.
• D) neither A nor B.

---

Definitions:

Underextension

A linguistic phenomenon where a child applies a word in a narrower scope than its usual meaning.

Overregularization

Overregularization is a language acquisition phenomenon where children apply regular grammatical rules too widely, leading to errors such as using "goed" instead of "went."

Perceptual Biases

Cognitive biases that impact how we perceive and interpret information from our senses.

Infant Language Development

The process by which infants acquire the capacity to understand and produce spoken language during the first few years of life.