An Important Lesson from the Black Monday Crash of 1987

question 16

Multiple Choice

An important lesson from the Black Monday Crash of 1987 and the tech crash of 2000 is that

• A) factors other than market fundamentals affect stock prices.
• B) the strong version of the efficient market hypothesis, that stock prices reflect the true fundamental value of securities, is correct.
• C) market psychology has little if any effect on stock prices.
• D) there is no such thing as a rational bubble.

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Definitions:

Sleep Disturbance

Any condition that disrupts normal sleep patterns, leading to insufficient or poor-quality sleep.

Eating Carbohydrates

The consumption of foods rich in carbohydrates, which are a primary source of energy for the body, including sugars, starches, and fibers.

Conflict

A struggle or disagreement between opposing parties, which can occur on an interpersonal, intra-personal, or group level.

Napping

A short sleep, typically taken during the day, to rest and rejuvenate one's energy levels.