If More People Think a Corporation's Stock Is Overvalued Than

question 5

Multiple Choice

If more people think a corporation's stock is overvalued than think it is undervalued then there is a

• A)surplus,so its price will rise.
• B)surplus,so its price will fall.
• C)shortage,so its price will rise.
• D)shortage,so its price will fall.

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Definitions:

Clerk

An employee who performs clerical work such as keeping records, filing, and other administrative tasks.

Prestigious Name

A name that carries high status or respect, often associated with excellence in a particular field.

Normal Model

A statistical distribution that is symmetric about the mean, showing that data near the mean are more frequent in occurrence.

Probability

The measure of the likelihood that a given event will occur, often expressed as a number between 0 and 1.