Examlex

Solved

One Effect of Speculators Is to Iron Out Price Fluctuations

question 97

True/False

One effect of speculators is to iron out price fluctuations because this is the way they make their profits.


Definitions:

High-Beta Stock

Stocks that have a higher volatility compared to the market, often experiencing larger fluctuations in price than the overall market.

Recession

A period of temporary economic decline during which trade and industrial activity are reduced, generally identified by a fall in GDP in two successive quarters.

Investor Sentiment

The overall attitude of investors towards a particular security or financial market, which can influence trading decisions and market movements.

Efficient Frontier

The efficient frontier is a concept in modern portfolio theory representing those portfolios that offer the highest expected return for a defined level of risk or the lowest risk for a given level of expected return.

Related Questions