Speculative bubbles may occur in the shares market?

1298EconomicsMedium

Aduring periods of extreme pessimism because so many stocks become undervalued

Bwhen stocks are fairly valued

Cbecause rational people may buy an overvalued share if they think they can sell it to someone for even more at a later date

Donly when people are irrational

Correct answer

B. when stocks are fairly valued

Explanation

The correct answer is when stocks are fairly valued.

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