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.

---

Definitions:

Financial Statements

Reports that summarize the financial performance and position of a company, including balance sheet, income statement, and cash flow statement.

Financial Affairs

encompasses all activities related to the management of money and investments for an individual or organization.

Operating Influence

A term not commonly used in standard financial or business lexicon and might be confused or conflated with Operating Income, which refers to the profit realized from a business's core operations.

Common Stock

A type of ownership in a corporation represented by shares, entitling holders to vote on corporate matters and receive dividends.