Which of the following does not help reduce the risk that people face ?

Related Mcqs:

If the efficient markets hypothesis is true, then ?

A. shares tend to be overvalued B. the stock market is informationally efficient so share prices should follow a random walk C. All of these answers D. fundamental analysis is a valuable tool for increasing one’s returns from investing in shares...

Which of the following should cause the price of a share of stock to rise ?

A. None of these answers B. An increase in expected dividends C. A reduction in aggregate risk D. A reduction in the interest rate E. All of these answers...

Share prices will follow a random walk if ?

A. shares are overvalued B. people behave irrationally when choosing shares C. markets reflect all available information in a rational way D. shares are undervalued...

It is difficult for an actively managed investment fund to outperform an index fund because ?

A. stock markets tend to be inefficient B. all of these answers C. index funds are able to buy undervalued stocks D. actively managed funds trade more often and charge fees for their alleged expertise...

Speculative bubbles may occur in the shares market ?

A. during periods of extreme pessimism because so many stocks become undervalued B. only when people are irrational C. when stocks are fairly valued D. because rational people may buy an overvalued share if they think they can sell it to someone for even more at a later date...