Successful financial management requires knowledge of not only the terminology, mathematics, and techniques of financial management, but also that of human psychology and sociology. Financial and economic history in general-and market bubbles in particular-are filled with examples of both rational and irrational behaviors. Which of the following behaviors are true characterizations of a market bubble and which are false? Behavior Asset bubbles tend to be corrected by a reversion of market prices toward the asset's intrinsic price-although this price correction is often slower than it should be in an informationally efficient market. Later in the development of a market bubble, asset prices are affected more by the trading behaviors of inexperienced and naive investors and speculators than from the investment activities of longer-term, experienced and more knowledgeable market participants. Newer investors in a market exhibiting a bubble tend to realize greater profits than investors or speculators who have been in the market for a much longer period