According to the Strong View of the Efficient Markets Hypothesis,security

question 45

Multiple Choice

According to the strong view of the efficient markets hypothesis,security prices reflect ________ and so financial markets are efficient.

• A) market fundamentals
• B) rational expectations
• C) momentum effects
• D) current market trends

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Definitions:

James-Lange Theory

A theory of emotion suggesting that physiological arousal precedes the experience of emotion.

Facial Feedback Effect

The hypothesis positing that facial muscle movements can affect the experience of emotions.

Behavior Feedback Effect

The phenomenon in which one's behavior can influence and change one's attitudes or feelings, often related to how consistently one's actions reflect personal values.

James-Lange Theory

A theory of emotion suggesting that emotions occur as a result of physiological reactions to events, where the emotional experience is secondary to the physical reaction.