The Only Way for Behavioral Patterns to Persist in Prices

question 87

Multiple Choice

The only way for behavioral patterns to persist in prices is if ________.

• A) markets are not weak-form efficient
• B) there are limits to arbitrage activity
• C) there are no significant trading costs
• D) market psychology is inconsistent over time

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Definitions:

Acculturation

The process through which individuals or groups from one culture come into contact with another and adopt or adapt to the cultural norms, values, and practices of the other group.

Diverse Populations

Refers to groups of people with varied backgrounds, including but not limited to race, ethnicity, gender, sexual orientation, age, and socioeconomic status.

Racial Identity Development

The series of predictable stages that people of color go through as they struggle to make sense of their relationship to their own cultural group as well as to the oppression of mainstream culture. A parallel process has been suggested for Whites.

Dominant Group

A group within a society that holds the most power, often setting standards and norms for others to follow.