Which one of the following terms is used to describe a market situation where prices are much higher than either fundamental or rational analysis would tend to support?
A)bear market
B)cloud
C)inversion
D)bubble
E)crash aversion

Question

Quizplus · Accepted Answer

A bubble is a market situation where prices are much higher than either fundamental or rational analysis would tend to support. In a bubble, investors trade on the expectation that they will be able to sell the asset at a much higher price before the bubble bursts, rather than the intrinsic value of the asset.

Which One of the Following Terms Is Used to Describe