whenever the price of an asset rises above what appears to be its fundamental value, the market is said to be experiencing a

Answers

Answer 1

Whenever the price of an asset rises above what appears to be its fundamental value, the market is said to be experiencing a bubble. A fundamental value refers to the intrinsic worth or fair value of an asset based on its underlying economic and financial characteristics.



When an asset's price exceeds its fundamental value, it suggests that investors are paying more than what the asset is worth. This can occur due to various reasons such as excessive optimism, speculation, or a herd mentality. In a bubble, the price of an asset can rise rapidly and significantly, detached from its underlying fundamentals. This can create a self-reinforcing cycle, as more investors buy into the asset, driving the price even higher.

However, bubbles are not sustainable and can eventually burst. When investors realize that the asset's price is not justified by its fundamental value, they may start selling, causing the price to decline. This can lead to a sharp correction or crash, resulting in significant losses for investors who bought at high prices.

Therefore, it is important to consider the fundamental value of an asset before investing. While market trends and momentum can be powerful drivers of short-term returns, over the long-term, it is the underlying economic and financial characteristics that determine an asset's value. By focusing on the fundamental value of an asset, investors can make informed decisions and avoid the pitfalls of speculative bubbles.

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Related Questions

what percentage of CTE learners enroll in post secondary education?​

Answers

Answer:

10th-grade public school students in 2002 who were CTE concentrators in high school, 72 percent enrolled in postsecondary education by 2006, or two years after their expected year of high school graduation, and 84 percent enrolled by 2012, or eight years after their expected year of high school graduation.

Answer:

75% – Percentage of high school students concentrating in a CTE discipline who pursue post-secondary education 43% – Percentage of young workers holding a CTE-related license or certificate who earn more than those holding an associate degree

Explanation:

In VAT (Value added tax) is it profitable to buy in large or small quantities?​

Answers

It’s more profitable to buy in large quantities.

Por que se dice que emprender suele ser una decisión muy difícil quien la toma sabe que esta renunciando a la estabilidad que otorga un salario

Answers

Answer:

porque se dice que quiero tomar el siguiente

Matt works part-time and is paid $6.75 per hour. Determine Matt's gross pay (hours worked x hourly rate of pay) for last week when he worked 20.25 hours. Round your answer to the hundredths place.

Answers

Answer:

Matt's gross pay (hours worked x hourly rate of pay) for last week when he worked 20.25 hours is equal to $136.69

Explanation:

Per hour amount paid to Matt = $6.75

Total number of hours worked by Matt = 20.25

To find Gross pay, multiply hours worked and hourly rate of pay.

Therefore,

Matt's gross pay (hours worked × hourly rate of pay) for last week when he worked 20.25 hours [tex]=20.25(6.75)=\$136.6875[/tex] ≈ $136.69

Facts about the chip category obtained from AC Nielsen are?


syndicated data.



survey data.



questionnaire data.



primary data.



experimental data.

Answers

Answer:

Explanation:

Then what is the question

what's the answer? please help, it's overdue​

Answers

Answer: Honestly in my opinion that's a no

Explanation: because that's there imagine without them they wouldn't be able to get that image up and making profit therefore the player should get a cut of the profit that is made.

____ reading will increase your focus and concentration, help you understand the reading, and prepare you to study.

Answers

Answer:

Active.

Explanation:

Active reading can be defined as a process which typically involves an individual being focused on his or her study. It is aimed at acquiring knowledge and understanding of a particular subject or topic without distractions.

Hence, active reading will increase your focus and concentration, help you understand the reading, and prepare you to study.

By law, an accountant must hold a CPA designation in order to
?

Answers

Answer:

The CPA designation isn't required to work in corporate accounting or for private companies. However, public accountants⁠—which are individuals working for a firm, such as Deloitte or Ernst & Young, that provides accounting and tax-related services to businesses—must hold a CPA designation.

Explanation:

Answer:

Prepare audited or reviewed financial statements.

Hope this helps :)

Gianna put $1,000 in a savings account for 18 months. The interest on the account is 3.5%.

How much will Gianna earn in interest? What amount will she have at the end of the time period?

Answers

Answer:

You will earn $52.96 in interest

You have $1,052.96 in total.

In what type of economy do individuals and firms determine what will be produced?
Mixed
Traditional
Market
Command

Answers

Answer:

market

Explanation:

I think it’s warket hope this helps

Shareholders had a good year, earning a 29% annual rate of return. The PE ratio today is 10.0 and the company just announced earnings per share of $2.50. The company has a 90% payout ratio. How much did the stock price change over the past year?

Answers

Answer:

$3.68

Explanation:

Rate of return =29%

PE ratio = 10.0

Earning per share = $2.50

P1 = PE ratio * EPS

P1= 10*2.50

P1 = $25

Payout ratio = 90%

Dividend = 2.50*90%

Dividend = $2.25

Rate of return = (P1+D1-P0)/P0

0.29= (25 + 2.25 - P0)/P0

0.29 P0 = 27.50 - P0

1.29P0 = 27.50

P0 = 27.50/1.29

P0 = $21.32

Change in stock price = $25 - $21.32

Change in stock price = $3.68

HELP FOR CROWN!!!
what is one thing a bank will require you to have when you ask for an auto loan?
A. keys to the car
B. proof of auto insurance
C. driver's license
D. letter of recommendation

Answers

Answer:

It is either C or D

Explanation:

Answer:

Driver's License

Janice, a nurse at a hospital, is preparing a presentation for trainee nurses about guidelines for patient care. What is the purpose of her
presentation?


A. to persuade

B. to instruct

C. to entertain

D. to debate

Answers

Answer:

B

Explanation:

To teach and acknowledge the guidelines for trainee nurses to help patients in an effective way

HELP PLEASE!!!
what is the outcome when a person defaults on a home loan?
A. the person goes to jail.
B. the bank will make the person work a second job.
C.the bank will take the person's car.
D.the bank will foreclose on the home.

Answers

Answer:

D.the bank will foreclose on the home.

Explanation:

The bank may even sue and garnish wages and financial accounts. The bank may even serve a conversion of accetts.

How do I find the cash flow coverage ratio?

Answers

Explanation:

There are a few different ways to calculate the cash flow coverage ratio formula, depending on which cash flow amounts are to be included. A general measure of the company’s ability to pay its debts uses operating cash flows and can be calculated as follows:

Cash flow coverage ratio = $80,000,000 / $38,000,000 = 2.105Cash flow coverage ratio = ($64,000,000 + $4,000,000 + $8,000,000) / $38,000,000 = 2

An oligopoly is a market structure in which a large number of firms dominate the market. T or F

Answers

Answer: F

Explanation:

An oligopoly is a market structure in which a large number of firms dominate the market.

An oligopoly is a market structure in which a large number of firms dominate the market. FALSE.

What are three elements of negligence?
Actual Harm
Breach of duty
State of mind
Duty of care
Proximate cause
Motive

Answers

Answer:

actual harm

breach of duty

duty to act

Which part of the check gives the bank permission to release the money?

Answers

Answer:

And even though all national banks and federally chartered credit unions are subject to the same hold rules, each institution can release your funds sooner at its discretion. By understanding the rules of funds availability, you can ensure you'll have access to your money when you need it.:

What careers are in the Information Support and Services career pathway of the IT career cluster? (15 points for you)

Question 1 options:

graphic artists, painters, artists


broadcasters, journalists, writers


help desk specialists, PC support specialists

Answers

I think it’s “help desk specialists, PC support specialists”

brief explain difference between moa and aoa ?​

Answers

Answer:

The MOA (Memorandum of Association) describes the powers and objects of the company, the AOA (Article of Association) defines its rules and the AOA (Articles of Association) is subordinate to the memorandum.

The risk-reward relationship says:

Answers

im not understanding this question.. can you reword it?

What does the term 'user
experience' refer to regarding a
website?
A. the overall ease of navigation and ability to
purchase on a company's website
B. the general experience a customer has when
using a product of a business
C. the customer experience when dealing with
customer service representatives

Answers

Answer:b

Explanation:

who wants to make a call??

Answers

Answer:

Zoom you mean?

Explanation:

Answer:

I want to call my mom,lol

Which of these is NOTa concern for consumers in times of inflation? a.They cannot anticipate the cost of goods and services. b.They lose money on their investments and savings. c.They are at a disadvantage when paying back borrowed money. d.They struggle when they are on a fixed income.

Answers

Answer:

c.They are at a disadvantage when paying back borrowed money.

Explanation:

In any economics of a country, inflation may be defined as the fall of the value of the money or currency of a country over a period of time. In inflation, the general price level increase and the value of money decreases.

Due to inflation, with each currency unit, less of goods or services can be bought. In inflation, the consumers are not concern about the disadvantage when they pay back the money that they borrowed because the value of the money decreases. Money decreases its value but the demand of goods and services increases in the economy.

equity shareholders are called what ​

Answers

Answer:

owners

Explanation:

Shareholders' equity represents the amount invested by the owners of a company in the business by either retaining earnings over time or by investing money in it. The shareholders' equity is a form of a company's net assets. Equity shareholders are also known as Equity Stockholders.

The equity shareholders of a company are called its owners.

HELP ME PLEASEE!! ILL GIVE CROWN!!!
which of the following should credit be used for?
A. small things you want
B. large things you need and that you can repay over time.
C. money that you can never afford to repay.
D. purchasing things you want so you dont have to save.

Answers

Answer:

B

Explanation:

Credit should be used for large things that you can't afford at the moment but over time will be able to repay (like bills). You should never purchase things that are too expensive for you to repay (within a year.)

Which of these is NOT a concern for consumers in times of inflation?
a.They cannot anticipate the cost of goods and services.
b.They lose money on their investments and savings.
c.They are at a disadvantage when paying back borrowed money.
d.They struggle when they are on a fixed income.

Answers

Answer: D

Explanation:

If the food handler has been diagnosed with one of the Big 6 pathogens
they can return to work 24 hours after showing no symptoms.
TRUE
FALSE

Answers

It’s False bro trust me

Answer:

False.

Explanation:

Suppose the GDP of the entire European Union is 350,000 euros and the exchange rate between euros and USD is 0.66 EURO=$1. What is the GDP of the European Union when measured in USD? Round your answer to the nearest hundredth.

Answers

Answer:

the GDP of the  European Union is $530,303.030

Explanation:

The computation of the GDP of the  European Union is shown below:

= Entire european union × euro ÷ exchange rate

= 350,000 euros × $1 ÷ 0.66

= $530,303.030

Hence, the GDP of the  European Union is $530,303.030

We simply applied the above formula

What would Jamie Lee's financial liability have been had she waited more than two days to report the debit/ATM card lost or stolen

Answers

Explanation:

If Jamie notifies the bank within 2 days of the lost card , her liability for unauthorized would be $50.

Jamie Lee's as the account holder is financially responsible for any form of transfers or withdrawals that has or will be made from their accounts and until He report the theft, he will be liable to all withdrawals.

What is a Checking Account:

A checking account is known to be a kind of bank account that is often used by people as a deposit account.

The usual amount deposited by them in this account is known to be used for paying bills and other form of purchases.

Base on the fact above, Jamie Lee's would be liable for his financial liability because she had waited for more than two days to report her debit/ATM card lost or stolen and as such any theft that happen within those two days on her account is her fault.

Learn more about  checking account from

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The following table lists the ages (in years) and the prices (in thousands of dollars) by a sample of six houses.AgePrice27165151823205351617180181611. By hand, determine the standard deviation of errors for the regression of y on x, rounded to three decimal places, is2. The coefficient of determination for the regression of y on x, rounded to three decimal places, is suppose the speed of light in a particular medium is 2.012 108 m/s. Calculate the index of refraction for the medium. A listing of the end of period balances of all the GL accounts is known as the a. Statement of financial position b. Subsidiary ledger c. General ledger d. Trial Balance 1) Use the TI-84 calculator to find the z-score for which the area to its left is 0.73. Round the answer to two decimal places. The z-score for the given area is __. 2) Use the TI-84 calculator to find the z-score for which the area to its right is 0.06. Round the answer to two decimal places. The z-score for the given area is __. consider the two vectors: x = [9 3 0 2] and y = [3 8 0 1]. find the outputs of each compound relational and logical statement by hand. a. m = (x= 4) b. n = (x= 4) c. k = ((x= 4)) XOR (X < ~= y) d. a =x ly x Test for odd number A 50. 0 ml sample of gas is cooled from 119 C. If the pressure remains constant, what is the final volume of the gas? calculate the mass percent of nickel chlorate in a solution made by dissolving 0.265 g ni(clo3)2 in 10.00 g water Looking at the nickel complexes as an example, it is found that those formed with ammonia give the complex [Ni(NH3)6]^2+ and when formed with ethylenediamine the complex [Ni(en)3)^2+ is the result. Even though both are octahedran complexes, why do you think that nickel is coordinated with six ammonia ligands in one case and only three ethylenediamine ligands in the other? as we saw in humans, even deleterious alleles can persist in a population. can you think of processes that account for this, in addition to deleterious recessive alleles hwat are the equilibriu concnetreation of mg and co3 ions in a sturate solution of magnesiu crabonte at 25c? ksp = 3.5x10-8 knowing the following: mp = 1.0073 amu, mn = 1.0087 amu, and me- = 0.00055 amu, calculate the energy released by the fusion of one mole of br-81 (mass = 80.9163 amu) An astronomer at the Mount Palomar Observatory notes that during the Geminid meteor shower, an average of 50 meteors appears each hour, with a variance of 9 meteors squared. The Geminid meteor shower will occur next week.(a) If the astronomer watches the shower for 4 hours, what is the probability that at least 48 meteors per hour will appear?(b) If the astronomer watches for an additional hour, will this probability rise or fall? Why? Suppose 2 landowners share water from a common underground aquifer. They can choose to take 0, 1, or 2 units of water each year for the next two years. In both years, the value of the 1st unit of water is $7 and the value of the second unit of water is $5. There are 4 units of water altogether. The cost of extracting water is $1 per unit. Finally, if there is an odd number of units left in the second year, assume the odd unit gets split between the 2 landowners, each getting half the value and paying half the cost. How much water will each landowner take in the 1st year if he chooses the amount of water to maximize his consumer surplus?a. 2 unitsb. 1 unitc. 0 units 2. (a) analyze explain how the poet uses both metaphor andpersonification in lines 6-7 of "courage." (b) interpret what is the purposeand effect of that language? explain,i Item 5 Amanda plans to use 40% of her income each month to pay for her rent. What percentage of her income will she have left to pay for the rest of her expenses and savings help me pls i need the answer The photoelectric threshold wavelength of a tungsten surface is 272 nm.a) What is the threshold frequency of this tungsten?b) What is the work function (in eV) of this tungsten?c) Calculate the maximum kinetic energy (in eV) of the electrons ejected from this tungsten surface by ultraviolet radiation of frequency1.4610151.461015Hz. convert the following compound to 1hexyne, hccch2ch2ch2ch3. be sure to answer all parts. A volume of 25.0 mL of 0.100 M HCl is titrated against a 0.100 M CH3NH2 solution addedto it from a burette. Calculate the pH values of the solution (a) after 10.0 mL of CH3NH2 solutionhave been added, (b) after 25.0 mL of CH3NH2 solution have been added. Choose the correct punctuation for this sentence. I need to know if the finance department will be working on the merger _______ next week.(see attached description) How would you make the following phrase possessive if there is more th see attached description Employees checks (see attached description Employees' checks Employee's checks Employee's checks Employee's checks