Which of the Following Is Correct Concerning Stock Market Irrationality

question 13

Multiple Choice

Which of the following is correct concerning stock market irrationality?

• A)Bubbles could arise,in part,because the price that people pay for stock depends on what they think someone else will pay for it in the future.
• B)Economists almost all agree that the evidence for stock market irrationality is convincing and the departures from rational pricing are important.
• C)Some evidence for the existence of market irrationality is that informed and presumably rational managers of mutual funds generally beat the market.
• D)All of the above are correct.

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Definitions:

Apical Dominance

The phenomenon where the main, central stem of the plant is dominant over (grows more strongly than) other side stems.

Auxin

A plant hormone that promotes root formation and bud growth.

Auxin

A class of plant hormones that plays a crucial role in coordinating growth and behavioral processes in the plant's life cycle.

Cytokinin

A class of plant hormones that promote cell division and growth, and delay the aging of plant organs by influencing nutrient mobilization and allocation.