Markets Would Be Inefficient If Irrational Investors __________ and Actions

question 4

Multiple Choice

Markets would be inefficient if irrational investors __________ and actions of arbitragers were __________.

• A) existed; unlimited
• B) did not exist; unlimited
• C) existed; limited
• D) did not exist; limited

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Definitions:

Actual Self

The concept referring to how individuals see themselves currently.

Ought Selves

The representation of the attributes that someone believes they should possess, often influenced by societal, familial, and personal expectations.

Self-regulation

Refers to the ability of an individual to manage their emotions, thoughts, and behaviors in accordance with their goals.

Big Five

A model that outlines five broad dimensions of personality: openness, conscientiousness, extraversion, agreeableness, and neuroticism.