Behavioral Finance - Reading 9: Inefficient Markets: The Th Business, black, action, likely, explained

mayanfang1

Q2. The price action in Baker Business Systems can least likely be explained as:

A)   noise trading.

B)   representativeness.

C)   the Ebullience Cycle.

Q3. Lang's rebalancing activities suggest she is a:

A)   shifter.

B)   rigid valuator.

C)   formulaic rebalancer.

Q4. Which defense mechanism did Cambridge use?

A)   The "almost right" defense.

B)   The "single predictor" defense.

C)   The "ceteris-paribus" defense.

Q5. Which of the following points in Lang's e-mail is her weakest argument against Cambridge's specific trading strategy?

A)   "In this trading strategy, Cambridge did not provide us with a plan for diversifying away the fundamental risk."

B)   "How do we know the new, lower price isn't accurate? Perhaps the profit shortfall could affect Glenbrook's cash flows."

C)   "Good Eats is a much smaller, financially weaker company. Its risk profile is different than that of Glenbrook."

Q6. Which of the following statements is least representative of Lang's investment approach? Lang is:

A)   a beta grazer.

B)   overconfident in her ability to predict stock movements.

C)   a risk-averse arbitrageur.

deqiang

thanks.

rawrdinosaur

ty

rawrdinosaur

ty

Figo-wong

plunged

suodi

[em50]

suodi

[em50]

maxsimax

tq

saint_zhu

ebullience

思霖

Thank you!