Models of Financial Markets That Emphasize Psychological Factors Affecting Investor

question 88

Multiple Choice

Models of financial markets that emphasize psychological factors affecting investor behavior are called ________.

• A) data mining
• B) fundamental analysis
• C) charting
• D) behavioral finance

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Definitions:

Rates of Return

The increase or decrease in value of an investment during a given time frame, shown as a percentage of the original investment cost.

World Stock Portfolio

A collection of stocks from companies located in various countries around the world, aiming for global diversification.

Volatility

Refers to the degree of variation of a trading price series over time, commonly measured by the standard deviation of logarithmic returns, indicating the risk associated with a security or market.

Treasury Bills

Short-term government securities with maturity periods of one year or less, issued at a discount from their face value.