Herd Behavior Can Best Be Described as

question 9

Multiple Choice

Herd behavior can best be described as

• A)the large number of investors involved in the stock market.
• B)how large participation in financial markets increase market efficiency.
• C)informed investors can outperform relatively uninformed investors.
• D)relatively uninformed investors follow the behavior of other investors instead of consider fundamentals.

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Definitions:

Finance Leases

Leasing agreements that transfer substantially all risks and rewards of ownership of the asset from the lessor to the lessee.

Contractual Agreement

A legally binding contract specifying the terms and conditions under which parties agree to perform certain actions.

Note Principal

The original amount of money borrowed or the amount still owed on a loan, separate from interest.

Interest Expense

The cost incurred by an entity for borrowed funds, often expressed as a percentage of the principal.