Whenever the price of an asset rises above what appears to be its fundamental value,the market is said to be experiencing
A) a conjectural mistake.
B) a fundamental mishap.
C) a speculative bubble.
D) a neuroeconomic flaw.

Question

Quizplus · Accepted Answer

When the price of an asset rises above its fundamental value, it is said to have entered the speculative bubble phase. This means that the asset is being valued higher than what it is actually worth due to speculative investor behavior, rather than its underlying fundamental value. This can lead to a market crash when the bubble eventually bursts. The other options do not accurately describe this phenomenon.

Whenever the Price of an Asset Rises Above What Appears