Behavioral Finance Argues That ____________

question 52

Multiple Choice

Behavioral finance argues that ____________.

• A) even if security prices are wrong it may be difficult to exploit them
• B) the failure to uncover successful trading rules or traders cannot be taken as proof of market efficiency
• C) investors are rational
• D) even if security prices are wrong it may be difficult to exploit them,and the failure to uncover successful trading rules or traders cannot be taken as proof of market efficiency
• E) All of these are correct.

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Definitions:

Moral Decisions

Choices made based on personal ethics and values, often involving a judgment between right and wrong.

Preconventional

A stage in Kohlberg's moral development theory characterized by an individual's reasoning based on personal benefits and the avoidance of punishment.

Moral Development

The process by which individuals develop their understanding of right and wrong, shaping their behavior and decision-making.

Ethical Standards

The principles and values that guide the behavior and decision-making process of an individual or organization, often reflecting societal norms of right and wrong.