Multiple Choice
Stock market crashes lead us to believe that
A) factors other than market fundamentals have an effect on asset prices.
B) unexploited profit opportunities never exist.
C) crashes are always predictable when market participants behave rationally.
D) bubbles are a natural outcome of an efficient market.
Correct Answer:
Verified
Correct Answer:
Verified
Q1: Sometimes one observes that the price of
Q2: The efficient markets hypothesis suggests that investors<br>A)should
Q3: A change in perceived risk of a
Q4: In the Gordon growth model,a decrease in
Q5: If expectations are formed adaptively,then people<br>A)use more
Q7: An expectation may fail to be rational
Q8: If additional information is not used when
Q9: People have a strong incentive to form
Q10: You have observed that the forecasts of
Q11: Using the Gordon growth formula,if D1 is