Behavioural Finance Differs from the Standard Model of Finance Because

question 77

Multiple Choice

Behavioural finance differs from the standard model of finance because behavioural 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) None of the above.

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Definitions:

Divergent Thinking

A cognitive technique or process designed for eliciting original ideas by investigating various feasible options.

Intellectual Disability

A term for varying degrees of cognitive impairment that affect intellectual functions and adaptive behavior.

Factor Analyzed

A statistical technique employed to discover fundamental factors or elements that clarify the correlation patterns among a group of observable variables.

Content Validity

Refers to the extent to which a test accurately measures or reflects the specific content of what it is supposed to assess.