What Was the Root Cause of the Decimation of the Kelp

question 38

Multiple Choice

What was the root cause of the decimation of the kelp beds along the west coast of the U.S.?

• A) Over fishing of the perch and herring in the area.
• B) A decline in the sea otter population that would control the sea urchin population.
• C) An increase in the orca population preying upon the sea otters.
• D) An explosion of the sea urchin population.
• E) A decline in the seal and sea otter population.

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Definitions:

Strong-form Efficient

A theory suggesting that all information, public and private, is fully reflected in stock prices, and that it is impossible to consistently achieve higher returns.

Semistrong-form Efficient

Refers to a market efficiency form where prices include all publicly available information, including both historical and newly released financial data.

Weak-form Efficient

A level of market efficiency that assumes all past trading information is already reflected in stock prices, thus negating the ability to gain higher returns through analysis of historical prices.

Survivorship Bias

Survivorship bias is the logical error of concentrating on the entities or people that made it past some selection process and overlooking those that did not, often leading to false conclusions.