If a group of investors tends to buy and sell together, should financial economists study their behavior

Question:

If a group of investors tends to buy and sell together, should financial economists study their behavior if there is no correlation between the net trades and contemporaneous returns? Explain why or why not.

Fantastic news! We've Found the answer you've been seeking!

Step by Step Answer:

Related Book For book-img-for-question

Behavioral Finance

ISBN: 9780190868741

1st Edition

Authors: H. Kent Baker, Greg Filbeck, John R. Nofsinger

See More Books

Question Posted: Feb 23, 2024 04:00 AM

See More Questions

How has the SarbanesOxley Act of 2002 affected financial reporting for publicly traded companies Do you think that the SarbanesOxley Act is effective in promoting ethical behavior for financial...
Founded by Jeff Bezos, online giant Amazon.com, Inc. (Amazon), was incorporated in the state of Washington in July, 1994, and sold its first book in July, 1995. In May 1997, Amazon (AMZN) completed...
Gary Brandt, treasurer of WorldCom, Inc., could not remember a year quite like the last. WorldCom had stunned the financial community in November 1997 with a $37-billion bid for MCI Corp., besting...
Review the following exhibits for Kitchenmaid: (Click the icon to view the functional cost breakdown.) (Click the icon to view the customer feature ratings.) m link the innn in this site function...
Indium (In) has a tetragonal unit cell for which the a and c lattice parameters are 0.459 and 0.495 nm, respectively. (a) If the atomic packing factor and atomic radius are 0.693 and 0.1625 nm,...
Solve the inequality in terms of intervals and illustrate the solution set on the real number line. 3 < 1/x 1
For each of the following, calculate the degrees of freedom $(d f)$ and determine the critical values of $t$ (assume $\mathbf{a}=.05$ ). a. N = 5, N = 5, H b. N =12, N2 = 12, H: H c. N = 9...
Muscle Bound is chain of fitness stows located in many large shopping centers. Recently, an internal memo from the CEO to all operations personnel complained about the budget overruns at Muscle...
If a (small) weight w is suspended from a spring, the length L of the stretched spring is a linear function of w. Find b and m in the formula L = mw+b if the unstretched spring has length 8" and a...
How can someone test whether more or less sophisticated people are more susceptible to trading based on moods?
Why do so few papers combine the fields of sociology and finance, especially when studying social interactions and investing?
The controller of Ashton Company prepared the following projected income statement: Sales.................................$88,000 Total variable cost...................23,760 Contribution margin...
144. Which of the following is not a part of biotechnology:- (1) Gene therapy (2) Invitro fretilization leading to a test tube baby (3) Developing of DNA vaccine (4) Biomagnification of pesticide...
149. Polyembryony is reported in I. Citrus II. Mango Correct name are III. Gossypium (1) I and III (2) II and III (3) I, II and III (4) I and II 150. The wheat grain has an embryo with one large,...
19. Find the tension T for the system shown in figure :- T T T 1 kg 2 kg 3 kg (1) IgN (2) 2 gN (3) 5 gN (4) 6 gN 20. A ball of mass 0.5 kg moving with a velocity of 2 m/sec strikes a wall normally...
65. Doubling the initial concentration of a reactant doubles t1/2 of the reaction then order of reaction is :- (1) 3 (2) 2 (3) 1 (4) Zero
101. An autosomal character present in both sexes, but more in one sex, then such type of character is known as- (1) sex linked (2) sex influenced (3) sex limited character (4) All 102. How many...
Copper Mountain Company has accumulated the following data over a six-month period: Separate the indirect labor into its fixed and variable components, using the high-lowmethod. Indirect Labor Hours...
-4 1 9. Let A = Find A-1, (A") and verify that (A")= (A-1)".
Now consider a person with the following value function under prospect theory: v(z) = z.8 when z ¥ 0 = -3(-z).8 when z This individual has the following weighting function:
Why might some prefer a prix fixe (fixed price) dinner costing about the same as an a la carte one (where you pay individually for each item)? (Assume the food is identical.)
Differentiate the following terms/concepts: a. Momentum and reversal b. Value and growth stocks c. Fundamental risk and noise-trader risk d. Carve-out and stub value
Question 17: Calculate the ratio of the Coulomb force to the gravitational force, Fc/Fg, between an electron and a proton inside a hydrogen atom. What is the ratio if they are 100 km apart?
A thin walled loop with a mass of 1.50 kg and with a radius of 10.0 cm rolls down a ramp with a height h=30.0 cm. If the loop starts from rest at the top of the ramp, what will its speed be when it...
Suppose there is a uniformly charged, infinitely tall metal surface. The surface charge density is -4.0 x 10^-10 C/m2. An electron is 1.5 meters away from the wall and is launched directly at it with...

If a group of investors tends to buy and sell together, should financial economists study their behavior

Question:

Step by Step Answer:

Just because net trades buysminussells are not correlated with contemporaneous returns one shou...View the full answer

Behavioral Finance

Students also viewed these Business questions