Which of the Following Is Not Consistent with the Efficient

question 125

Multiple Choice

Which of the following is not consistent with the efficient market hypothesis?

• A)Stock prices should follow a random walk.
• B)Index funds should typically outperform highly managed funds.
• C)News has no effect on stock prices.
• D)There is little point in spending many hours studying the business pages looking for undervalued stocks.

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Definitions:

Autonomy Versus Shame

A stage in Erik Erickson's theory of psychosocial development where toddlers learn to exercise will and do things for themselves or they doubt their abilities.

Industry Versus Inferiority

A stage in Erik Erikson's theory of psychosocial development where children develop a sense of competence and ability when they successfully manage new skills and tasks.

Initiative Versus Guilt

This developmental stage, characterized by Erik Erikson's psychosocial theory, involves young children starting to assert control and power over their environment, leading to a sense of purpose or feelings of guilt over their actions.

Autonomy Versus Shame

Autonomy versus shame is a stage in Erik Erikson's theory of psychosocial development where toddlers strive for independence and self-control, facing either a sense of autonomy or feelings of shame and doubt.