Assume a Stock's Price Remains Relatively Stable While the Money

question 60

Multiple Choice

Assume a stock's price remains relatively stable while the money flow becomes highly positive. Which one of the following is most expected given this scenario?

• A)price decrease
• B)stable price
• C)price increase
• D)increasing trading volume
• E)decreasing trading volume

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Definitions:

Hindsight Bias

A tendency to exaggerate the certainty of what could have been anticipated ahead of time.

Presidential Election

An electoral process in which citizens vote to elect an individual to serve as the head of the government or the state.

Availability Heuristic

A strategy in which one estimates the frequency or probability of an event by the ease with which mental operations, such as retrieval of examples and construction of examples, can be carried out.

Frequency

In general terms, it refers to how often something occurs within a specific interval or context, such as the number of repetitions of a wave per second in physics.