Answered step by step
Verified Expert Solution
Question
1 Approved Answer
9:10 . . } 4 1 point A key driver of the GameStop mania, this occurs when investors tend to follow or copy what other
9:10 . . } 4 1 point A key driver of the GameStop mania, this occurs when investors tend to follow or copy what other investors are doing. They are influenced by emotion, social media pressure and instinct, rather than relying upon their own independent analysis. The fear of missing out Overconfidence of getting profit Herding instinct O Loss aversion 1 point per Rayan buys 500 shares of Square Pharmaceuticals that currently trade at 285 tk share. A few days later, he reads in the financial express that the company is expected to release outstanding results in the third quarter due to a successful deal with a foreign company to import covid vaccine. Once the construction company releases its third quarter results, the stock price rises as expected. As a matter of fact, for a week, the stock price rises to 290 tk per share but then drops to tk 280 per share. He wonders why the price does not rise further. The reason is Weak form of efficiency Market correction O strong form of efficiency
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started