Question
The no-trade theorem strengthens the assumptions of this hypothesis. For 10 points each:
[10h] Name this hypothesis with weak, strong, and semi-strong forms described by Eugene Fama. This hypothesis predicts that it’s impossible to reliably beat the market, and that asset prices follow a random walk.
ANSWER: efficient markets hypothesis [or EMH]
[10m] Alongside Amos Tversky, this behavioral economist developed prospect theory, which challenges the EMH. This author of Thinking, Fast and Slow emphasized loss aversion and other economic biases.
ANSWER: Daniel Kahneman
[10e] The EMH is most often applied to the market for these instruments, which represent equity in a company. Bonds and these securities comprise the bulk of most mutual funds.
ANSWER: stocks [accept shares; prompt on equities]
<Social Science - Social Science - Economics>
Data
Summary
| Tournament | Edition | Exact Match? | Heard | PPB | Easy % | Medium % | Hard % |
|---|---|---|---|---|---|---|---|
| 2025 PACE NSC | 06/07/2025 | Y | 38 | 16.32 | 92% | 47% | 24% |