Critics of Behavioral Finance Use Which One of These as an Argument

question 25

Multiple Choice

Critics of behavioral finance use which one of these as an argument for market efficiency?

• A)Research papers supporting market efficiency tend to end up "in file drawers"
• B)Underreactions fail to exist in actual studies
• C)The overall community of financial economists firmly decided the markets are efficient
• D)Overreactions offset underreactions in almost every market study conducted to date
• E)Conservatism has been found to be absent in studies under actual market conditions

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Definitions:

Informal Economies

Economic activities that are not monitored by the government and are often cash-based, including unreported work and black market transactions.

Bureaucracy

A system of government or management involving multiple levels of hierarchy and a complex set of rules and procedures.

Economic Stress

A condition or situation characterized by financial strain, uncertainty, or hardship affecting individuals, families, or communities, often due to external economic factors.

Nuclear Family

A family group consisting of two parents and their children (biological or adopted), considered the basic unit of society.