An Implication of the Efficient Markets Hypothesis Is That

question 46

Multiple Choice

An implication of the efficient markets hypothesis is that

• A)only sophisticated investors will be able to earn above-normal profits from financial investments.
• B)above-normal profits are available only to major traders.
• C)above-normal profits will be eliminated in the trading process.
• D)unless he or she acts recklessly, the average investor should be able to make above-normal profits.

Describe different sleep stages and phenomena associated with them, such as hypnagogic sensations and REM sleep.

Understand how market mechanisms and formal lines of authority coordinate functions in various types of organizations.

Recognize the importance of structure in supporting innovation within large, established firms entering new lines of business.

Explain the concepts of "span of control" and the structural implications of "tall versus flat" organizations.

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Definitions:

Operant Conditioning

A method of learning that employs rewards and punishments for behavior, which are used to either increase or decrease the likelihood of a behavior repeating.

Classical Conditioning

A training technique characterized by the recurrent pairing of two cues, leading to an outcome where the first cue alone can elicit a response initially caused by the second cue.

Generalization

The process in psychology of applying learned behavior and responses to similar stimuli that were not part of the original learning.

Secondary Reinforcement

A form of reinforcement where a stimulus gains its reinforcing power through its association with a primary reinforcer.