Which of the Following Is a Fundamental Principle Ofbehavior Finance

question 34

Multiple Choice

Which of the following is a fundamental principle ofbehavior finance

• A) the use of P/E ratios
• B) the tendency to avoid acknowledging investment errors
• C) selling stocks at a loss for tax purposes
• D) constructing a diversified portfolio

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Definitions:

Zen Buddhism

Zen Buddhism is a branch of Mahayana Buddhism focused on meditation (zazen) and the direct experience of enlightenment, emphasizing the practice of mindfulness and the pursuit of wisdom.

Pure Land Buddhism

A branch of Buddhism focused on the devotion to Amitabha Buddha, aiming to achieve rebirth in his Pure Land, a place of bliss and enlightenment.

Honami Koetsu

A prominent Japanese artist and calligrapher from the early Edo period, known for his work in tea ceremony utensils and lacquerware.

Edo Calligrapher

A practitioner of the art of calligraphy during the Edo period in Japan (1603-1868), known for their skilled brushwork and composition.