首页
外语
计算机
考研
公务员
职业资格
财经
工程
司法
医学
专升本
自考
实用职业技能
登录
外语
Economists believe that investors are rational, and that stock prices are therefore unpredictable. It sounds peculiar, but the l
Economists believe that investors are rational, and that stock prices are therefore unpredictable. It sounds peculiar, but the l
admin
2009-06-24
85
问题
Economists believe that investors are rational, and that stock prices are therefore unpredictable. It sounds peculiar, but the logic is ironclad.
Rational investors would take into account everything they know when buying or selling stock—all the information available about where profits, interest rates, technology and so on are going. So stock prices would reflect all available knowledge, and would change only when new information came in. And new information is, by definition, unpredictable, which means that changes in stock prices would be unpredictable, too. But investors, being human, are driven by fear, greed and the madness of crowds.
In principle this should create patterns in stock prices, and in principle you can use those patterns to outperform the market. But while it may be very hard to tell, whether the market is overvalued or undervalued, one thing is for sure: It fluctuates more than it should. That is, instead of rising or falling only when there is real news about future, stocks surge and plunge for no good reason.
People sell because other people are selling, or buy because other people are buying. And, as a result, it is more a series of random leaps than a random walk. Tuesday was a case in point. On a slow news day, markets suddenly dived, with the Dow falling by more than 3 percent and the Nasdaq by more than 5 without anything happening to change your fundamental view about what is on in the U.S. economy. Why was the market so easily spooked? Presumably because everyone is even more confused than usual about what stocks are really those days.
On one side, the U.S. economy has been wallowing in good news. Productivity has been soaring, allowing the economy to grow far faster than seemed possible. And with clever new applications of silicon chips coming out every day, it is easy to become exuberant about the future. On the other hand, as any financial theorist could tell you, good news that you already expect to hear isn’t news. Five years ago, a 2 percent annual increase in worker productivity would have been regarded as excellent, and stocks would have risen sharply. Today it would be regarded as a disappointing performance, and would drive stocks down.
So, is it terrific or incredible? Nobody really knows. And a rational market would accept this ignorance, and wait for some actual evidence in favor of one side or the other.
Of course, it doesn’t work that way. One Tuesday, something caused investors to become slightly less convinced than they had been the day before that we are living in the best of all possible world. And the result was a huge destruction of paper-virtual-wealth.
选项
A、investors are not always rational
B、stock price reflects all available knowledge
C、a rational investor should be good in prediction of the market
D、because new information is unprediction it is hard for investors to be rational
答案
A
解析
转载请注明原文地址:https://kaotiyun.com/show/yITd777K
本试题收录于:
公共英语五级笔试题库公共英语(PETS)分类
0
公共英语五级笔试
公共英语(PETS)
相关试题推荐
Whichofthefollowingistrueaccordingtotheauthor?Thefactthatchildrenarriveatschoolataboutthesametimeshowsth
WhichofthefollowingstatementsabouttheEuropeansoldiersiscorrect?Accordingtotheauthor,itishardforasocietyto
SchoolingandEducationItiscommonlybelievedintheUnitedStatesthatschooliswherepeoplegotogetaneducation.Neve
Accordingtotheauthor,whichofthefollowingstatementsistrue?Inthelastparagraphthestatement"onlyonebecamePele’
Accordingtotheauthor,whichofthefollowingstatementsistrue?Peleiscitedasanexampleinthesecondparagraphtoillu
FinancialRisksSeveraltypesoffinancialriskareencounteredininternationalmarketing(themajorproblemsincludecomme
SuccessfulLanguageLearners1.Somepeopleseemtohaveaknackforlearninglanguages.Theycanpickupnewvocabulary,mast
Thereisnohierarichyamongcultures.Professionallinguiststhinkthattheideaofhierarchyworkswhenlanguagesareinissu
A.rarelyissuccesssomysteriousB.largerewardsfollowC.IeliminatethecandidateD.weshoulddropthemandm
One’seconomicconditionoftenaffectshisorherwayoflife.
随机试题
对某慢性胃炎病人进行护理评估,在收集到的下列资料中,与发病密切有关的因素是()。
预应力混凝土梁钢筋张拉时,其钢筋的实测伸长值与相应的理论计算差值应控制在()以内。
建筑外墙装饰是考虑城市、小区整体规划的效果或商业经营宣传的需要,在建筑外墙增加附属的东西使其更加美观、宣传更加直观。广告牌的设置位置不符合现行国家工程建设消防技术标准的要求的是()。
甲公司是一家关注于高科技移动领域的互:联网公司。公司没有森严的:等级制度,强调员工平等,崇尚创新,在处理多样化的问题时,鼓励员工跨部门合作,在工作中发挥自己的专长和创意,努力打造客户需要的产品。甲公司的企业文化类型属于()。
在教育过程中教师如果用简单粗暴、讽刺挖苦的做法来处理问题就违反了()原则。
相对于小汽车和公共汽车这两种交通方式.轨道交通具有较强的规模经济性,即只有当乘客流量相当大时才会实现盈亏平衡,所以适宜在已经成熟的社区建设,但这样一来,就不能起到为土地开发导向的作用。如果想用轨道交通导向,就要忍受较长时间的亏损,并且冒较大投资风险,且难以
Whatcanwelearnabouttheradiostation?
Theywaitedinthe______forthefrontdoortoopen.
Iunderstand______preparationthatstaffmustputinunderpressuretomeetthedeadline.
SomeyearsagoIwasofferedawritingassignmentthatwouldrequirethreemonthsoftravelthroughEurope.[hadbeenabroadaco
最新回复
(
0
)