Wymer and Others Tried to Justify Their Schemes by Saying

question 49

Multiple Choice

Wymer and others tried to justify their schemes by saying that there was an economic downturn and it was necessary to pursue risky investments and hide information from regulator to try to recover. This might have been more believable had it not been for:

• A)amassing of personal fortunes.
• B)lack of fraud in investments.
• C)insolvency in a time of great economic prosperity.
• D)other firms' ability to weather the tough financial times.

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Definitions:

Support Level

In technical analysis, this refers to a price level below which a security or market tends not to fall.

Primary Trend

A long-term movement in stock market prices, typically lasting for a year or more, indicating the general direction of the market.

Mental Accounting

A concept in behavioral finance where individuals classify, interpret, and prioritize money, often leading to irrational decision-making.

Fundamental Risk

The risk associated with inherent operational, financial, and market factors affecting an investment.