Speculative bubbles tend to occur when:

Group of answer choices

Expectations change for predictions of future earnings and interest rates.

Greater risks lead to higher average returns.

Investors decide to buy an asset based on recent price behavior and not future fundamentals.

Both $($Investors decide to buy an asset based on recent price behavior and not future fundamentals$)$ and $($Expectations change for predictions of future earnings and interest rates$)$

Derivatives make it possible for investors to hedge against risk.