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:

Stressors

External factors or stimuli that cause stress or tension in an individual's life, potentially affecting their mental and physical well-being.

Homeostasis

The process by which organisms maintain a stable internal environment in the face of external changes.

Distress

Negative stress that can result in anxiety or concern, often triggered by unpleasant events or situations.

Eustress

Positive stress that motivates and energizes individuals, leading to improved performance and well-being.