The Paradox of Efficient Markets Is That

question 24

Multiple Choice

The paradox of efficient markets is that

• A)even though markets are efficient overall,there are pockets of inefficiency.
• B)news about anomalies makes the market less efficient.
• C)investors attempting to uncover and use information about security prices help make the market more efficient (i.e.,an "efficient amount of inefficiency")
• D)investors make the market less efficient.

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Definitions:

Phobic Disorder

An anxiety disorder characterized by an extreme and irrational fear of an object, place, or situation that poses little to no actual danger.

Histrionic Personality Disorder

A psychological disorder characterized by a pattern of excessive emotionality and attention-seeking behaviors.

Obsessive Compulsive Disorder

A mental health disorder characterized by obsessive thoughts and compulsive actions, such as cleaning, checking, or hoarding.

Dependent Personality Disorder

A psychological condition marked by an excessive need to be taken care of, leading to submissive and clinging behavior.