A situation in which the price of an asset differs from its fundamental market value is called
A) an unexploited profit opportunity.
B) a bubble.
C) a correction.
D) a mean reversion.

Question

Quizplus · Accepted Answer

When the price of an asset differs significantly from its fundamental value, it can lead to a bubble - a situation in which the asset is overvalued due to speculation and not based on its actual worth. This can result in a sudden decline in prices, which can be damaging to investors who have invested heavily in the bubble.

A Situation in Which the Price of an Asset Differs