Price bubbles may be evidence that
1. financial markets are inefficient
2. financial markets are rational
3. the investors have a herd instinct
4. investors do not have a herd instinct
A) 1 and 3
B) 1 and 4
C) 2 and 3
D) 2 and 4
Correct Answer:
Verified
Q7: Diversification reduces
A)systematic risk
B)unsystematic risk
C)market risk
D)purchasing power risk
Q8: Portfolio risk encompasses
1. a firm's financing decisions
2.
Q9: If the financial markets were not efficient,
A)all
Q10: If an investor believes that financial markets
Q11: In a well-diversified portfolio, the risk associated
Q13: Possible investment objectives may include
1. capacity to
Q14: Asset allocation is important to help diversify
Q15: Even if financial markets have elements of
Q16: An active portfolio strategy is premised on
A)the
Q17: Since virtually all investments involve risk, the
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