According to the Efficient-Market Hypothesis, Changes in Stock Prices

question 67

Multiple Choice

According to the efficient-market hypothesis, changes in stock prices:

• A)follow a random walk.
• B)can be predicted from available information.
• C)are driven by irrational waves of optimism and pessimism.
• D)are based on what investors expect other investors to pay.

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Definitions:

Cognitive Maps

Mental representations of physical locations, helping individuals to navigate and understand spatial environments.

Cognitive Processes

Mental activities involved in the acquisition, storage, retrieval, and use of knowledge, including perception, memory, reasoning, and problem-solving.

Classical Conditioning

Learning via the association between a stimulus present in the environment and one that occurs naturally.

CS And US

In classical conditioning, CS stands for conditioned stimulus and US stands for unconditioned stimulus.