Another Question from a Princeton Review CAT

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The stock market is strongly affected by public perception because the price of a stock is driven up when a large number of people view it as a safe and profitable investment. Other investors intentionally buy stock that is not popular with the public, thereby .

Which of the following best completes the passage above?


A)
taking a bigger risk in the hope of diversifying their portfolios


B)
taking advantage of the effect of public perception, which may allow an unpopular stock to trade for less than its value


C)
not allowing the opinions of the public to affect their decision-making


D)
ignoring public opinion and relying instead on statistical analysis


E)
allowing themselves to become more vulnerable to market fluctuations


Official Answer: b would you guys have picked that?
Source: — Critical Reasoning |