The Study of the Cognitive Processes and Biases Associated with Making

question 85

Multiple Choice

The study of the cognitive processes and biases associated with making financial and economic decisions is known as:

• A)efficient thinking hypothesis.
• B)financial cognition.
• C)financial leverage.
• D)behavioral finance.

---

Definitions:

Financial Risk

A potential for financial loss inherent in an investment or business operation.

Uncertain Prices

Prices that are not fixed or determined, often fluctuating due to various market conditions or uncertainties.

Risk Profile

A representation of an individual's or entity's exposure to risk, especially in terms of investment.