Which of the Following Is a Fundamental Principle of

question 2

Multiple Choice

Which of the following is a fundamental principle of
Behavior 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:

Less Developed Countries

Nations with a lower standard of living, underdeveloped industrial base, and low Human Development Index relative to other countries.

Welfare Dependency

A situation where individuals or families rely primarily on government benefits for their income over an extended period, often leading to limited financial self-sufficiency.

Poverty

A condition where individuals lack sufficient financial resources to meet basic living expenses such as food, shelter, and clothing.

Nobel Prizes

Prestigious awards annually given in several categories such as Physics, Chemistry, Medicine, Literature, Peace, and Economic Sciences for significant contributions.