Which statement best describes the relationship between the stock market and herd behavior?

Group of answer choices

Herd behavior contributes to stock market changes because it compels stockbrokers to act on emotion rather than reason.

Stock market employees work in a constant state of anxiety, much like herd animals.

Stock market bubbles and crashes are sometimes caused by herd behavior but are most often caused by fear.

Both herd behavior and the stock market are motivated mainly by greed, which prevents people from using logic and reason.

1 Answer