Which of the Following Is Correct Concerning Stock Market Irrationality

question 13

Multiple Choice

Which of the following is correct concerning stock market irrationality?

• A)Bubbles could arise,in part,because the price that people pay for stock depends on what they think someone else will pay for it in the future.
• B)Economists almost all agree that the evidence for stock market irrationality is convincing and the departures from rational pricing are important.
• C)Some evidence for the existence of market irrationality is that informed and presumably rational managers of mutual funds generally beat the market.
• D)All of the above are correct.

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Definitions:

Tenochtitlán

The capital of the Aztec Empire, located on an island in Lake Texcoco in what is now Mexico City.

European City

An urban settlement within Europe characterized by historical architecture, diverse cultures, and significant influences on global culture and politics.

Venice

A city in northeastern Italy, famous for its unique canal system, picturesque waterways, and historical significance as a major maritime power during the Middle Ages and Renaissance.

Coyolxauhqui

Refers to the Aztec moon goddess whose dismembered body is represented in a famous stone relief, discovered at the site of the Templo Mayor in Mexico City.