Options
- A
Due to loss aversion attitude of investors
-
Due to asynchronous timing of arbitrageurs
Correct answer
- C
Due to regular buying support from hedgers
- D
Due to long-term view of speculators
Why this is the answer
Bubbles are sustained because arbitrageurs, acting at different times and with varying incentives, do not correct overpricing immediately, leading to prolonged bubbles.
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