If a Share of Stock Is Correctly Valued Today, a Bubble

question 13

Multiple Choice

If a share of stock is correctly valued today, a bubble in the stock market is when you purchase a stock because

• A) you expect future dividends to rise.
• B) you expect interest rates to fall.
• C) you expect other people will be willing to pay more for the stock in the future.
• D) you expect interest rates to rise.