Noise traders
A) tend to lose money on stock trades, but help to stabilize the market.
B) tend to make higher returns than do "buy-and-hold" investors.
C) create additional risk in the market by increasing price fluctuations.
D) trade only when they have inside information.
C
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Financial crises are typically ________
A) characterized by sharp declines in asset prices B) associated with increases in business failures C) accompanied by sharp economic downturns D) all of the above E) none of the above
Most of the unemployment experienced during the Great Depression was
a. cyclical. b. structural. c. seasonal. d. functional.
The slope of the demand curve and the price elasticity of demand are
a. basically the same thing b. determined by supply c. are derived from production and distribution costs d. different because slope is based on absolute changes and elasticity is based on percentage changes e. implicit in the shape of the supply curve
Which of the following is the best example of a stock variable?
a. U.S. GDP in 2008 b. The daily sales of economics textbooks c. Bill Gates' annual salary from Microsoft Corporation d. The total wealth of the 50 richest U.S. citizens e. U.S. government purchases during 2008