Irrational behavior can cause asset price bubbles

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Reference no: EM134019844

Question

What form of irrational behavior can cause asset price bubbles?

A. People do not base their investment decision on the fundamental value of the asset but only on the belief that the asset price will continue to increase. B. People accidentally buy assets that they did not want, and this drives up the asset price. C. Asset owners panic and begin to sell their assets as quickly as possible. D. People throw darts at a list of stocks and buy whatever the dart lands on without thinking about the reasons.

Reference no: EM134019844

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