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The Price of Stock in Computer Literacy, Inc

Question 4

Multiple Choice

The price of stock in Computer Literacy, Inc., increased by 33 percent in one day when it changed its name to fatbrain.com. This illustrates the


A) importance of branding.
B) presence of irrationality in stock trading.
C) absence of any basis for fairly valuing stocks.
D) fact that humans are incapable of making rational decisions about investments.

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