Which of the following is an example that best describes the "Bandwagon Effect"?
A) A first-time investor reads a blog and withdraws money from the currency market, avoiding a market downturn
B) An investor group listens to market commentary and simultaneously purchase a recommended currency which appreciates in value
C) A well-known investor and speculator makes a move in the currency market and other investors take the same position, resulting in the loss of all investors
D) A well-known investor and speculator takes a position in the market and other investors take an opposing position in which they profit greatly
Correct Answer:
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