Questions

MGT 012Y 001 SQ 2025 Week 10 HW - Investor Behavior

Multiple choice

What are four traits of overconfident traders?

Options

A.Make Markets Volatile

B.Trade More

C.Increase Yield

D.Earn Less

E.Outperform Peers

F.Reduce Market Volatility

G.Under Diversify

View Explanation

Verified Answer

Please login to view

Step-by-Step Analysis

The question asks for four traits of overconfident traders, and the provided correct-answer list specifies four traits: Make Markets Volatile, Trade More, Earn Less, Under Diversify. Option by option analysis: - Make Markets Volatile: This aligns with the idea that overconfident traders often take larger or more frequent bets, which can introduce greater price moves and market instability. The rationale is that their aggressive trading reduces price discovery efficiency......Login to view full explanation

Log in for full answers

We've collected over 50,000 authentic exam questions and detailed explanations from around the globe. Log in now and get instant access to the answers!