Ask Question
BusinessBusiness
24 August, 07:50

The efficient markets hypothesis holds only if all investors are rational. True or false?

+4
Answers (1)
  1. 24 August, 08:25
    0
    This is true, the efficient market hypothesis only holds if all the investors are rational, for example if an investor is not rational and wants to make a loss instead of profit, then the efficient market hypothesis wont hold as the investor will be acting in a way that wont benefit him. When the investor acts irrationally, then he wont react correctly to the information he has and buy or sell stocks which he isn't supposed to buy or sell and this will change the price of the stock from what the price of the stock should be.
Know the Answer?
Not Sure About the Answer?
Get an answer to your question ✅ “The efficient markets hypothesis holds only if all investors are rational. True or false? ...” in 📙 Business if there is no answer or all answers are wrong, use a search bar and try to find the answer among similar questions.
Search for Other Answers
You Might be Interested in
What did the bird say to the other bird?
Answers (2)
7. Assume that you manage a $10.00 million mutual fund that has a beta of 1.05 and a 9.50% required return. The risk-free rate is 4.20%. You now receive another $8.50 million, which you invest in stocks with an average beta of 0.65.
Answers (1)
Which of the following is not considered a credit? A. Interest earned B. Overdraft fee C. Direct deposit D. Transfer into account
Answers (1)
1. On March 1, a business paid $3,600 for a twelve month liability insurance policy. On April 1 the same business entered into a two-year rental contract for equipment at a total cost of $18,000.
Answers (1)
You are examining an investment opportunity. It would require you to pay money today and then receive payments semi-annually from that investment.
Answers (1)
New Questions in Business
During its most recent fiscal year, Raphael Enterprises sold 200,000 electric screwdrivers at a price of $15 each. Fixed costs amounted to $400,000 and pretax income was $600,000.
Answers (1)
ABC Limited, Inc., sells its product in a perfectly competitive market for a price of $15 per unit and hires workers at a daily wage of $75. Labor is the only factor cost, and the firm is currently earning profits.
Answers (1)
Minor Company had the following department dа ta: Physical Units Work in process, July 1 30000 Completed and transferred out 165000 Work in process, July 31 45000 All materials are added at the beginning of the process.
Answers (1)
Depreciation A company purchased a machine on January 1 of the current year for $800,000. Calculate the annual depreciation expense for each year of the machine's life (estimated at 5 years or 25,000 hours, with a salvage value of $80,000).
Answers (1)
At which level of production does the company make the most profit?
Answers (2)
Home » Business » The efficient markets hypothesis holds only if all investors are rational. True or false?
Sign Up Forgot Password?