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[Related to the Chapter Opener] The chapter opener states that many investors who bought stocks in 2000 and held them through 2010 found that tiney

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[Related to the Chapter Opener] The chapter opener states that "many investors who bought stocks in 2000 and held them through 2010 found that tiney nald recolved a negative real retum on their investment over the 10-year period. "Why would investors have invested in stocks during those years if they received a negative real retum? A. Investors may have used rational expectations to predict continued growth in the markets. B. Investors may have used adaptive expectations to formulate their future stock price forecasts. C. Investors may have believed the high rate of returns from the 1980 s would continue. D. All of the above. An article in the Economist noted that while economic growth in China was slowing. "stocks have more than doubled in value." The article stated that unlike in developed countries where large institutional investors buy the overwhelming majority of the stock purchased, in China 90% of buying is done by individual investors. It described the demand for stock by these investors as a "mania." Source:"A Crazy Casino," Economist, May 26, 2015. What does the article mean when it describes stock buying by individual investors as a mania? A. The demand for stock is incredibly high. B. Investors are enthusiastic about purchasing stock. c. Investors are crazy. D. Investors are purchasing stock irrationally. Individual investors would be likely to exhibit this behavior than institutional investors

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