Which of the following arises when investors decide to copy the observed decisions of other investors or movements in the markets rather than follow their own beliefs and information.
A)herd-behavior.
B)market timing.
C)market seeking.
D)passive investing.

Question

Quizplus · Accepted Answer

Herd behavior occurs when investors follow the actions of others in the market without considering their own beliefs or information. This often leads to a "herd mentality" where investors make decisions based on the actions of others rather than on their own analysis of the market.

Which of the Following Arises When Investors Decide to Copy