When Investors Follow a "Herd Instinct," They Make Decisions

question 67

Multiple Choice

When investors follow a "herd instinct," they make decisions:

• A) based on the results of performance analysis.
• B) based on emotion, not objective information.
• C) as a group, inflating the prices of goods somewhat arbitrarily.
• D) based on the sound logic of a group, rather than the individual.

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Definitions:

Trailing Spouse

Refers to a person who follows their partner to a new location due to a work assignment or job relocation, often facing career and social adjustments.

Equivalent Job

Positions that are substantially similar in terms of responsibilities, skills required, working conditions, and compensation.

Paid Leave

A work policy that allows employees to take time off from their duties while still receiving their regular income, typically used for personal, medical, or family reasons.

Industrialized Countries

Nations that are characterized by a significant level of industrialization, economic development, and standard of living.