If the idea of herd instinct is true,it suggests that:

Question

Quizplus · Accepted Answer

The idea of herd instinct suggests that individuals often follow the actions of the crowd rather than making independent decisions based on their own analysis and information. This can lead to inefficiencies in the market and a deviation from the efficient-market hypothesis, which assumes that all information is quickly and accurately reflected in asset prices. Therefore, choice A is the best option.

If the Idea of Herd Instinct Is True,it Suggests That