One Reason Why the Efficient Capital Market Hypothesis May Not

question 14

Multiple Choice

One reason why the efficient capital market hypothesis may not hold in reality is that:

• A)risk has been eliminated from the process of arbitrage.
• B)most investors appear in studies to be rational.
• C)arbitrage appears to be fully effective.
• D)irrationality may be related across individuals.
• E)irrationalities cancel out across investors.

Discuss the psychological and physiological explanations for sleep phenomena like sleepwalking and night terrors.

Understand the concept and value of autonomy and integration in fostering innovation and efficiency within organizations.

Identify and differentiate between the notions of exploiting and exploring within ambidextrous organizations.

Recognize the structural designs suitable for supporting both innovative ventures and established business operations.

---

Definitions:

Form Natural Units

Organize or group elements based on inherent or intrinsic characteristics that naturally belong together.

Open Feedback Channels

Systems or processes established to facilitate the free exchange of feedback among individuals or groups within an organization.

Job Enrichment

A method of motivating employees by giving them more responsibility and variety in their jobs.

Frederick Herzberg

An influential American psychologist known for his work on job motivation and satisfaction, particularly the Two-Factor Theory which differentiates between motivators and hygiene factors.