The "No - Markets Fail Often" Camp Believes That Investors

question 105

True/False

The "No - Markets Fail Often" camp believes that investors behave like herds of animals.

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Definitions:

Separation Threshold

The minimum distance or difference in stimuli required to distinguish between two separate entities or experiences.

Difference Threshold

The minimal detectable difference between two stimuli required for detection that they are not the same, also known as the just noticeable difference (JND).

Separation Threshold

The minimum distance or difference between stimuli detectable by the sensory system.

Response Threshold

It is the minimal amount of stimulus intensity required for a neuron to fire a response or for a specific response criterion to be met in behavior.