Contrarian Investors

question 29

Multiple Choice

Contrarian investors

• A) have no evidence that they do better than the public.
• B) buy a stock when its price rises.
• C) follow the general advice of financial analysts.
• D) believe that investors overreact to news.

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Definitions:

Double Coincidence of Wants

A situation in barter economies where two parties each hold an item the other wants, allowing for a direct exchange.

Medium of Exchange

An instrument or system used to facilitate the sale, purchase, or trade of goods between parties.

Welfare Banks

Financial institutions or programs designed to support low-income individuals or families, offering services like microloans or savings accounts with beneficial terms.

Financial Services

Economic services provided by the finance industry, including banking, insurance, investment management, and securities trading.