A speculative bubble is when:
A) assets are priced much higher than is warranted by the profitability of the assets.
B) assets are priced much lower than is warranted by the profitability of the assets.
C) assets prices are high and profits are even higher.
D) market manipulation by dominant hedge funds bids up the market prices of assets.

Question

Quizplus · Accepted Answer

A speculative bubble occurs when asset prices are driven up by market speculation and hype, rather than the fundamental value of the asset. This often results in assets being priced much higher than their actual profitability would justify.

A Speculative Bubble Is When