Which of the Following Best Describes a Price 'Bubble

question 78

Multiple Choice

Which of the following best describes a price 'bubble'?

• A)Abnormal returns that are not explained by EMH.
• B)The movement over time in a security's price where an increase is equally likely to be followed by a fall as a further increase.
• C)Periods where share prices fall because of pessimistic sentiment.
• D)Periods where share prices rise because of optimistic sentiment.
• E)Periods where prices rise as a result of excessive optimism that are followed by a sharp correction.

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Definitions:

Unordered Office Supplies

Refers to office supplies sent to a company or individual without prior request or order, often as a scam to demand payment.

Legal Obligation

A duty enforceable by law, derived from statute, contract, or legal precedent.

Unilateral Contract

An agreement in which one party makes a promise to do something in return for an act of some sort.

Required Action

A specific action that is mandated or obligatory under the terms of a contract, law, or directive.