The rapid expansion phase of an industry is characterized by
A) extreme sensitivity to interest rates and other economic factors.
B) high returns and relatively low risks.
C) willingness of investors to buy almost any stock associated with the industry.
D) many decades of sustained above average growth.

Question

Quizplus · Accepted Answer

During the rapid expansion phase, investor enthusiasm is high, leading to a willingness to invest in almost any stock related to the industry, often without regard to fundamentals.

The Rapid Expansion Phase of an Industry Is Characterized by