English Language · English
A pair of sentences (S1, S2) is given below. Select the most appropriate co-relationship of the second sentence to the first: S1: The 'Efficient Market Hypothesis' posits that stock prices reflect all available information, making it impossible to 'beat the market' consistently. S2: Behavioral economists, however, point to 'irrational exuberance' and panic-selling as proof that human psychology often overrides data. The second sentence:
Verified Solution4 OptionsUpdated: October 2026👁️1 View
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- 1Introduces a counter-theory based on human behavior.✓
- 2Supports the idea that markets are always efficient.
- 3Defines the mathematical formula for stock price reflection.
- 4Claims that data is the only factor in market fluctuations.
Correct answer
Introduces a counter-theory based on human behavior.
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