In Relation to Behavioural Finance,if Investors Do Not Seek to Maximise

question 11

Multiple Choice

In relation to behavioural finance,if investors do not seek to maximise returns on investments but are quite willing to accept a lesser outcome or return,it is called:

• A) trading noise.
• B) herding instinct.
• C) framing behaviour.
• D) heuristic behaviour.

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Definitions:

Constitution

A system of fundamental principles or established precedents according to which a state or other organization is governed.

Federalism

Federalism is a political system where power is divided between a central government and smaller political units, such as states.

Authority

The capability or privilege to direct actions, decide on matters, and command adherence.

Govern

To officially and legally direct or control policies, actions, or the functioning of a state, community, or organization.