If a Market Is Inefficient,as New Information Is Received About

question 30

Multiple Choice

If a market is inefficient,as new information is received about a security:

• A)nothing will happen.
• B)the stock price will fall at first and then later rise.
• C)there will be a lag in the adjustment of the stock price
• D)there will be negative demand for the stock.

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Definitions:

Evolutionary Basis

The principle that behaviors or traits have developed and been maintained throughout evolutionary history because they serve adaptive functions for survival or reproduction.

Industrialized Societies

Societies characterized by large-scale industry, advanced technology, and a focus on manufacturing and services rather than agriculture.

Rate Of Obesity

The proportion of a population that is classified as obese, often measured to assess public health.

Genetic Predispositions

The genetic factors that influence an individual's susceptibility or resistance to certain conditions, behaviors, or diseases based on inherited DNA variations.