Petulia has been following the stock market, and has noticed that it has generally been declining for the last several weeks. Many of her friends have sold stock, but Petulia looks at this situation as a good opportunity to buy. Petulia's views are consistent with the ___________ approach to investing in the stock market.
A) contrarian
B) revisionist
C) arbitrarian
D) negativist

Question

Quizplus · Accepted Answer

A contrarian approach to investing in the stock market involves going against the crowd and buying stocks when others are selling. This approach assumes that the market is not always rational and that by taking a different approach, an investor can capitalize on market inefficiencies. Petulia's decision to buy stocks when her friends are selling is a classic example of a contrarian approach.

Petulia Has Been Following the Stock Market, and Has Noticed