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lana66690 [7]
3 years ago
5

When a "bubble" arises, asset prices are driven by:

Business
1 answer:
Crazy boy [7]3 years ago
7 0

Answer:

d. shifts in market psychology and successive waves of irrational exuberance.

Explanation:

Bubble in respect to financial market means an unexpected and non-explainable reason. This although the economists believes arises because of the emotional attachment and effects on an asset. As for example: when an asset is made using the specific raw material which is discovered to be precious in the terms it is ancient then, automatically the price of the asset increases in the market.

Thus, this is nothing but a market psychology that is basically an effect of emotional concerns of individual mindset, which is irrational.

This theory is explain by Keynesian the economists.

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An investor is short stock at $70. If the stock's market price is $40, and the investor anticipates the price will continue to d
max2010maxim [7]

Answer:

A. Buy a call

Explanation:

In the case when the investor purchase a call on the stock so the investor has the right to purchase for repurchase for a fixed price

Also the right way is to hedge a non-realized profit for a stock position i.e. short for purchasing a call

Therefore in the given situation, the correct option is A.

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4 years ago
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Explanation:

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3 years ago
Read 2 more answers
How does the law of supply and demand operate?
Orlov [11]
When supplies of goods and service are plentiful, the prices usually drop but when they are scarce, prices start rising.
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3 years ago
_____ is the process of planning and executing the conception pricing promotion and distribution of ideas goods and services to
Lady bird [3.3K]
The answer is Marketing
4 0
3 years ago
Mary Andrews, Inc. had the following transactions:
katrin [286]

Answer:

$522,000

Explanation:

Given;

Cash proceeds on sale of land = $430,000

Cash proceeds on sale of equipment = $140,000

Purchase of treasury stock with cash = $53,000

Purchase of equipment with cash = $48,000

Issuance of common stock for cash = $70,000

To find the net cash provided by investing, the investing activities in the information given are; Cash proceeds on sale of land, Cash proceeds on sale of equipment, and Purchase of equipment with cash.

Purchase of treasury stock with cash and Issuance of common stock for cash are financing activities.

Net cash provided by investing activities =  $430,000 + $140,000 -  $48,000

= $522,000

The correct answer is $522,000 which is not a part of the options given.

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4 years ago
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