Question 36

Select all the correct statements about noise traders. Noise traders _____

I. cannot survive in the market even in the short term because smart rational traders can quickly take advantage of the wrong price generated by noise traders

II. can survive in the short term because their irrational behavior is unpredictable from the eyes of rational traders

III. may beat the rational traders in the short term, especially if rational traders trade on margin

IV. is unlikely to survive in the long term because any market in the long term will become efficient

		I, III
		II, III
		I, II, III
		II, III, IV