The Only Way for Behavioral Patterns to Persist in Prices

question 87

Multiple Choice

The only way for behavioral patterns to persist in prices is if ________.

• A) markets are not weak-form efficient
• B) there are limits to arbitrage activity
• C) there are no significant trading costs
• D) market psychology is inconsistent over time

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Definitions:

Five-Factor Model

Theoretical model of personality, developed and tested by Costa and McCrae, based on the “Big Five” factors underlying clusters of related personality traits: neuroticism, extraversion, openness to experience, conscientiousness, and agreeableness.

Personality Trait

A characteristic pattern of thought, behavior, or emotion that is consistent across time and situations in an individual.

Marriages Fail

The breakdown or dissolution of a marital relationship due to various factors like communication issues, infidelity, financial problems, or incompatibility.

Divorce

the legal termination of a marriage by a court or other competent body, dissolving the bonds of matrimony between the parties.