Noise Trading Refers to Investors Who

question 59

Multiple Choice

Noise trading refers to investors who

• A) overreact to good and bad news.
• B) strictly follow the efficient markets hypothesis.
• C) filter out the noise involved in following their stocks.
• D) ignore new information about stocks.

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Definitions:

Sociology

The study of social behavior, organization, and patterns of human interaction within societal contexts.

Sociohistorical Context

The social, historical, and cultural background and environment that influences an event, period, or society.

Wilhelm Wundt

Considered the father of experimental psychology, he established the first psychology laboratory at the University of Leipzig in 1879.

Behaviour

Behaviour refers to the actions or reactions of an individual or a system in response to external or internal stimuli.