When investors invest in something simply because everyone else is doing it, they are:
A) suspect to "tulip mania."
B) following a "herd instinct."
C) acting objectively on full information available in the market.
D) leveraging market performance for their own gain.
Correct Answer:
Verified
Q2: In finance, leverage is using:
A) borrowed money
Q3: When investors become irrationally optimistic that an
Q4: A bubble is defined to be when:
A)
Q5: A financial bubble starts to inflate when:
A)
Q6: An investor who sees through irrational optimism
Q7: Financial markets are:
A) in many ways the
Q8: If the efficient-market hypothesis is true, then
Q9: The two interconnected concepts that lie at
Q10: In finance, leverage:
A) multiplies the effect of
Q11: The recency effect is:
A) a basic human
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