Behavioral Finance Differs from the Standard Model of Finance Because

question 103

Multiple Choice

Behavioral finance differs from the standard model of finance because behavioral finance

• A) precludes the impact of investor psychology.
• B) includes the impact of investor psychology.
• C) accepts the Efficient Markets Hypothesis.
• D) rejects the idea of market anomalies.
• E) rejects the idea of technical analysis.

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Definitions:

Congressional Ban

A congressional ban is a prohibition or restriction imposed through legislation passed by the U.S. Congress.

Lobbying

The act of attempting to influence the actions, policies, or decisions of officials in their professional capacity, typically by interest groups or individuals.

Unintended Consequences

Outcomes that are not the ones foreseen or intended by a purposeful action, often contrary to what was originally planned.

Interest Group

An interest group is an organization that advocates for specific policies or issues, seeking to influence public policy and decision-making.