Which Is NOT an Implication of the EMH

question 34

Multiple Choice

Which is NOT an implication of the EMH?

• A) To do superior industry or company analysis, you must understand the variables that affect returns and do a superior job of estimating these variables.
• B) Aggregate market analysis that involves very detailed analysis of reliable historical economic data should outperform a simple buy-and-hold policy.
• C) A superior analyst is one who can consistently select stocks that provide positive abnormal returns on a risk-adjusted basis.
• D) If a portfolio manager does not have any superior analysts, he/she should consider investing funds in an index fund.
• E) If a portfolio manager has some superior analytical skills, they should be encouraged to concentrate in second tier stocks which have liquidity but may be neglected.

Grasp the concepts of emotion management and emotion labour in both pre-industrial and modern societies.

Comprehend the principles of impression management and the role of personal experiences in shaping social interactions.

Analyze how social institutions operate on the principles of domination, competition, and cooperation.

Identify and explain the effects of status cues in social interactions.

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Definitions:

Innate Tendency

Natural instincts or inclinations present at birth and not acquired through learning.

Competence, Autonomy

Attributes related to individuals' abilities to effectively perform tasks and make independent decisions, contributing to their sense of mastery and self-determination.

Relatedness

In psychology, relatedness refers to the need to feel connected to others, being an essential component of human motivation according to various theories, including self-determination theory.

Physiological Needs

Basic physical requirements necessary for survival, such as food, water, and sleep.