Question

Which of the following characterize noise traders?

I. They do not care about intrinsic value.

II. They are always in the minority.

III. They can move price outside the bounds of intrinsic value.

IV. They trade on small events.

a) I and II only.

b) I, III, and IV only.

c) II, III, and IV only.

d) II and IV only.

Answer

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