According to Studies in Behavioral Finance

question 90

Multiple Choice

According to studies in behavioral finance,

• A)People tend to assign a higher value to their ability to outperform than is true in reality
• B)People tend to assign a lower value to their ability to outperform than is true in reality
• C)HYPERLINK "" Error! Hyperlink reference not valid.HYPERLINK "" Error! Hyperlink reference not valid.
• D)Women tend to be more overconfident in their investment abilities than men
• E)Both A)and C)are correct

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Definitions:

Firm's Profits

The financial gains a firm obtains after deducting all expenses, taxes, and costs from its total revenues.

Financial Capital Markets

Marketplaces where individuals and institutions can trade financial securities, commodities, and other fungible assets.

Savers

Individuals who allocate a portion of their income towards savings, either in cash, bank deposits, or other forms of investment, for future use.

Investors

Individuals or entities that allocate capital with the expectation of receiving financial returns.