Noise Traders

question 7

Multiple Choice

Noise traders

• A)pursue trading strategies based on inflated view of their ability to understand the significance of a piece of news.
• B)make use of inside information.
• C)reduce the amount of risk in the market.
• D)help to ensure that asset prices reflect the fundamental values of the securities being traded.

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Definitions:

Nasal Cavity

The hollow space within the nose through which air flows, filtered, warmed, and moistened before reaching the lungs.

Uvula

The uvula is a small, fleshy extension at the back of the soft palate above the throat, playing roles in speech and the triggering of the gag reflex.

Nasopharynx

The upper part of the throat behind the nose, serving as an airway in the respiratory system and a pathway for food and liquids.

Nasal Conchae

Curved bony structures in the nasal cavity that help to moisten, warm, and filter the air we breathe.