Which of the Following Is a Fundamental Principle of Behavioral

question 26

Multiple Choice

Which of the following is a fundamental principle of behavioral 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

---

Definitions:

Labour Statutes

Laws specifically related to the regulation of employment conditions, worker rights, and employer responsibilities.

Organization Process

The structured series of actions and methods designed to achieve the goals and objectives of an organization.

Good Faith

An honest intention to act without taking an unfair advantage over another party in a transaction or contractual agreement.

Employment Relationship

A legal and professional relationship between an employer and an employee characterized by the employee performing work under the control and direction of the employer in exchange for compensation.