Select the statement(s) that best describe(s) irrational exuberance?I. It represents frenzied buying and selling in the market.II. It is irrational because P/E values are too high.III. It usually precedes a significant market decline.IV. It was a phrase first used by Alan Greenspan.
A. Only I, II, and III.
B. Only III and IV.
C. Only II, III, and IV.
D. Only II and III.
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Behavioral phenomena best characterized by which of the following?I. Random behavior.II. Natural instincts.III. Mental preferences.IV. Biases.
A. Only I, II, and III.
B. Only I, III, and IV.
C. Only II, III, and IV.
D. All are correct.
Market bottoms are best characterized by:I. Increased positivism.II. Increased fear.III. Deceased fear.IV. Extreme pessimism.
A. Only I and III are correct.
B. Only II and IV are correct.Your selection is incorrect
C. Only II is correct.
D. Only IV is correct.
Which of the following represent heuristic or knowledge-based bias?I. Buying at trendline retests.II. Selling at the breach of support.III. Selling at resistance.IV. Buying at breakout.
A. Only I is correct.
B. Only II and IV are correct.
C. Only III is correct.
D. All are correct.
Sunk cost bias is most closely associated with which of the following?
A. Magical thinking.
B. Certainty bias.
C. Loss-aversion bias.
D. Regret bias.