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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


Definitions:

High-Dividend Policy

A corporate strategy focusing on paying out a large portion of its earnings to shareholders in the form of dividends.

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