Writing in The Wall Street Journal in 2009, economist Jeremy Siegel pointed out that the efficient markets hypothesis
a. was responsible for the financial crisis of 2008-2009.
b. was responsible for the Great Depression of the 1930s.
c. claims that prices observed in financial markets are always "right.".
d. claims that prices observed in financial markets are mostly "wrong.".
d
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According to the liquidity premium theory, a yield curve that is flat means that
A) bond purchasers expect interest rates to rise in the future. B) bond purchasers expect interest rates to stay the same. C) bond purchasers expect interest rates to fall in the future. D) the yield curve has nothing to do with expectations of bond purchasers.
Prince Henry the Navigator was one of the leading explorers from _____
a. England b. France c. Holland d. Portugal e. Spain
When an agent attempts to reveal information to the principal, which of the following is occurring?
a. Signalling b. Screening c. Moral hazard d. Asymmetric information
An economy has two workers, Paula and Ricardo. Every day they work, Paula can produce 4 computers or 16 shirts, and Ricardo can produce 6 computers or 12 shirts. What is the opportunity cost for Ricardo to produce one computer?
A. 4 shirts B. ½ shirt C. 2 shirts D. ¼ shirt