A speculative event (bubble) is a situation in which prices are rapidly risingand there is a high volume amount of trading that are at odds with somemeasure of true or intrinsic value. Even long-run speculative events orbubbles will burst. oWe are supposing bubbles exist, but like efficiency, bubbles are just a mental construct and there is the model issue of joint hypothesis test
SPECULATIVE EVENTS:Dutch Golden Age Tulip Market:What can you tell me about the supposed speculative bubble of the early 1600swhich has come to be known as Tulip Mania?
Consider the following chart: