What Form of Irrational Behavior Can Cause Asset Price Bubbles

question 119

Multiple Choice

What form of irrational behavior can cause asset price bubbles?

• A) People do not based their investment decision on the fundamental value of the asset but only on the belief that the asset price will continue to increase.
• B) People accidentally buy assets that they did not want, and this drives up the asset price.
• C) Asset owners panic and begin to sell their assets as quickly as possible.
• D) People throw darts at a list of stocks and buy whatever the dart lands on without thinking about the reasons.

---

Definitions:

Multiple Sclerosis

An autoimmune disease that affects the brain and spinal cord, leading to various neurological symptoms due to damage to the myelin sheath.

Zinc Deficiency

A condition resulting from insufficient levels of zinc in the body, which can lead to growth retardation, loss of appetite, and impaired immune function, among other symptoms.

Nerve Conduction Fibers

Specialized fibers that transmit electrical impulses throughout the nervous system.

Lens Of Eye

A transparent, flexible structure in the eye that helps to refract light to be focused on the retina.