1) When investors disregard their own information which is incomplete and follow the momentum activities of other market participants, they could inadvertently cause a financial bubble by transmitting inaccurate information with each additional trade. This phenomenon is called ____
1) When investors disregard their own information which is incomplete and follow the momentum activities of other market participants, they could inadvertently cause a financial bubble by transmitting inaccurate information with each additional trade. This phenomenon is called ____
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
Related questions
Question
1) When investors disregard their own information which is incomplete and follow the momentum activities of other market participants, they could inadvertently cause a financial bubble by transmitting inaccurate information with each additional trade. This phenomenon is called ______________.
Multiple Choice
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Asymmetric information.
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Attribution bias.
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Systematic bias.
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Overconfidence.
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Information cascade.
2) Canada Revenue Agency requires firms to claim only one-half of the incremental capital cost of a new project in its first year for tax purposes. This rule is called the _________.
Multiple Choice-
CCA rule.
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Half-CCA rule.
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Two-year rule.
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Half-year rule.
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Incomplete CCA rule.
3)Alternative ways of calculating operating cash flows are the bottom-up approach, the top-down approach, and the tax shield approach.
True/False? -
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