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If the Efficient Markets Hypothesis Is Valid, Then a Person

question 262

Multiple Choice

If the efficient markets hypothesis is valid, then a person should:
I. buy mutual funds.
II. diversify.
III. follow a buy-and-hold strategy.


Definitions:

Stress Reaction

A response or change in the body or mind when presented with stressors, affecting an individual's health and wellbeing.

Reaction Formation

A psychological defense mechanism whereby an individual unconsciously replaces an unacceptable or anxiety-inducing emotion or desire with its opposite.

Frustration Quotient

A term that may be used to measure the level of frustration experienced by individuals in certain situations, but it is not a widely recognized or standardized metric in psychology or organizational behavior. NO.

Psychological Consequences

The effects or outcomes on an individual's mental and emotional state due to certain events or conditions.

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