Which of the Following Is a Misconception of Market Efficiency

question 14

Multiple Choice

Which of the following is a misconception of market efficiency?

• A) prices are set in a random fashion
• B) expected return implies actual return
• C) investors will perform equally
• D) all of the above

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Definitions:

On-the-Job Training

A form of instruction and learning that occurs within the work environment, aiming to equip employees with the necessary skills for their specific roles.

Power Distance

A societal aspect indicating the degree to which individuals with lower status within organizations and institutions recognize and anticipate an unequal distribution of power.

Competitive Inertia

The tendency of organizations to persist with competitive strategies due to past successes, even when they are no longer effective.

Uncertainty Avoidance

A societal characteristic indicating how much ambiguity and uncertainty are accepted within a culture.