Excess Volatility Refers to

question 40

Multiple Choice

Excess volatility refers to

• A) the unwillingness of financial analysts to consistently recommend the same stocks.
• B) the greater volatility of futures prices compared to the volatility of prices of the underlying assets.
• C) the tendency for stocks with high rates of returns also to have quite variable returns.
• D) the larger movements in market prices of stock than in their fundamental values.

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Definitions:

Get & Transform

A feature in Excel that allows users to import, clean, and transform data from various sources for analysis.

Insert Table

An action or command in document processing and spreadsheet software that allows users to create a table structure within a document or sheet.

Promote

To support or actively encourage the progress, growth, or acceptance of something.

Demote

In organizational terms, to reduce someone's rank or position; in software or digital content creation, it refers to decreasing the importance or level of an item in a hierarchical structure.