Noise Traders

question 62

Multiple Choice

Noise traders

• A) pursue trading strategies based on an inflated view of their ability to understand the significance of a piece of news.
• B) make use of inside information.
• C) reduce the amount of risk in the market.
• D) help to ensure that asset prices reflect the fundamental values of the securities being traded.

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Definitions:

GDP

Gross Domestic Product is the aggregate value, in terms of money or market price, of all end products and services generated within the confines of a country during a certain period.

Socioeconomic Variables

Characteristics that define the social and economic factors of individuals or groups, such as income, education, and occupation.

Standard of Living

The scope of wealthiness, contentment, material commodities, and life's necessities accessible to a certain class within the social economy or a defined area.

Frans Hals

A Dutch Golden Age painter known for his portraits, depicting lively and spontaneous expressions.