Behavioral Finance Suggests That Investors React to New Information in an Efficient

question 55

True/False

Behavioral finance suggests that investors react to new information in an efficient manner such that security prices accurately reflect the new information.

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Definitions:

External Attributions

The process of attributing the cause of one's own or others' behavior to external factors or situational circumstances.

Individualism

A societal concept that prioritizes individual liberty and autonomy above the interests or management of the group or government.

Dispositional Attributional Bias

The tendency to attribute people's behaviors to their character or personality while underestimating situational influences.

Group Goals

Objectives or outcomes that a group collectively seeks to achieve, which can influence the behavior and cooperation of its members.