Behavioral Economics Uses Concepts and Theories from the Field of _____

question 31

Multiple Choice

Behavioral economics uses concepts and theories from the field of _____ to explain _____, the systematic patterns in behavior that lead to consistently erroneous decisions.

• A)psychology; cognitive dissonances
• B)anthropology; disruptive biases
• C)anthropology; receptive biases
• D)psychology; cognitive biases

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Definitions:

Risk-Free Asset

A financial investment that promises a certain return without any chance of monetary loss.

Portfolio

An assortment of financial assets owned by a person or an organization.

Beta

A criterion for the volatility, or established risk, inherent in a security or portfolio ensemble in the context of the broader market.

Portfolio

A collection of financial investments like stocks, bonds, commodities, cash, and cash equivalents, including mutual funds and ETFs.