Behavioral Finance Argues That

question 29

Multiple Choice

Behavioral finance argues that

• A)even if security prices are wrong, it may be difficult to exploit them.
• B)the failure to uncover successful trading rules or traders cannot be taken as proof of market efficiency.
• C)investors are rational.
• D)even if security prices are wrong, it may be difficult to exploit them and the failure to uncover successful trading rules or traders cannot be taken as proof of market efficiency.

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Definitions:

Customer Satisfaction

A measure of how well a company's products or services meet or surpass the expectations of its customers.

Life Events

Significant occurrences in an individual's life that can cause substantial changes, either positive or negative.

Honeymoon-Hangover Effect

Describes a situation where initial enthusiasm (honeymoon) is followed by a period of disillusionment or decline in performance (hangover).

Good Performance

Achieving or exceeding the established standards or expectations in a specific task or function.