If the Weak Form of Market Efficiency Holds Then

question 37

Multiple Choice

If the weak form of market efficiency holds then:

• A)fundamental analysis is useless.
• B)stock prices reflect insider trading.
• C)stock price changes follow a random walk.
• D)all of the above.

Acknowledge the importance of scientific research and evidence in management practices.

Realize the potential of crowdsourcing in generating solutions and making decisions.

Appreciate the significance of multiple sources of evidence in decision making, including hard data and expert opinions.

Understand the difference between crowdsourcing to a general crowd versus experts.

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Definitions:

Dichromatic Cues

Visual information that helps in the perception of color, particularly in individuals with dichromacy, which is a form of color blindness featuring two instead of three cone cell types for color vision.

Phi

Represents the Golden Ratio, approximately equal to 1.618, which is considered aesthetically pleasing in art and architecture; also a symbol used in psychology by Wolfgang Köhler for the phi phenomenon, an optical illusion of perceived motion.

Motion Parallax

A depth cue in which objects closer to the observer move faster across the visual field than objects farther away, giving a sense of depth and distance.

Figure Ambiguity

The quality of an image or representation that leads to multiple interpretations due to its unclear form.