Efficient-Market Hypothesis Is the Theory Describing the Behavior of a Market

question 25

True/False

Efficient-market hypothesis is the theory describing the behavior of a market in which securities are typically in equilibrium,security prices fully reflect all public information available and react swiftly to new information,and,because stocks are fairly priced,investors need not waste time looking for mispriced securities.

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Definitions:

Superego

One of the three components of the human psyche in Freudian psychoanalytic theory, representing the internalized societal standards of morality and ethics.

Metaphor

A figure of speech in which a word or phrase is applied to an object or action to which it is not literally applicable.

Superego

In psychoanalytic theory, the part of the personality that acts as a moral center, guiding behavior by incorporating societal and parental standards.

Personality Structure

The organized pattern of behaviors and attitudes that makes a person distinctive, encompassing traits, temperament, and character.