The Basis for Efficient Markets Includes All of the Following

question 47

Multiple Choice

The basis for efficient markets includes all of the following EXCEPT:

• A) A small number of well-informed investors who collude to set fair prices.
• B) Many investors attempting to maximize their returns from investing.
• C) Immediate reactions by investors to pertinent new information.
• D) Investors benefitting by obtaining important new information first.
• E) Investors constantly seeking better investment opportunities.

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Definitions:

Aversive A State

Likely refers to an aversive state, a condition or situation that an organism seeks to avoid due to it being unpleasant or painful.

Aversive B State

A theoretical state arising from a negative stimulus, driving an organism to action to avoid discomfort or unpleasant outcomes; not a widely used or recognized term in psychology, so context-specific definition might vary.

A State

A temporary condition or phase that an individual or system experiences, which can influence thoughts, feelings, and behaviors.

Positive A State

A condition characterized by the presence or increase of positive emotions or affect.