If the Stock Market in the United States Is Efficient,how

question 31

Essay

If the stock market in the United States is efficient,how do you explain the fact that some people make very high returns? Would it be more difficult to reconcile very high returns with efficient markets if the same people made extraordinary returns year after year?

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Definitions:

Task Difficulty

The level of challenge presented by a task, which can affect an individual's performance and the amount of effort required to complete it.

Moderately Difficult Job

A job that presents a balanced challenge, requiring skill and effort but still within an individual's capability to accomplish successfully.

Cognitive Components

The elements related to mental processes such as perception, memory, and problem-solving within a broader system or model.

Subjects' Verbal Reports

The documented verbal expressions given by participants in a study about their thoughts, feelings, or behaviors.