Problems with Behavioural Finance Include

question 10

Multiple Choice

Problems with behavioural finance include:
I. the behaviouralists tell us nothing about how to exploit any irrationality
II. the implications of behavioural patterns are inconsistent from case to case, sometimes suggesting overreaction, sometimes underreaction
III. like technical trading rules, behaviouralists can always find some pattern in past data that supports a behaviouralist trait

• A)I only
• B)II only
• C)I and III only
• D)I, II and III

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Definitions:

Psychological Laboratories

Facilities specifically designed for conducting research and experiments in psychology, where various aspects of human behavior and mental processes can be studied.

Stanford Achievement Test

A standardized test designed to measure the academic performance of students in various subjects.

Reaction Time

The duration it takes for an individual to respond to a specific stimulus.

Language Ability

The capacity to understand, produce, and use words and sentences to communicate effectively.