Behavioral finance argues that
A)even if security prices are wrong, it may be difficult to exploit them.
B)the failure to uncover successful trading rules or traders cannot be taken as proof of market efficiency.
C)investors are rational.
D)even if security prices are wrong, it may be difficult to exploit them and the failure to uncover successful trading rules or traders cannot be taken as proof of market efficiency.

Question

Quizplus · Accepted Answer

Behavioral finance argues that even if security prices are wrong, it may be difficult to exploit them due to various factors such as transaction costs and limited access to information. Additionally, the failure to uncover successful trading rules or traders cannot be taken as proof of market efficiency because market inefficiencies may still exist despite the inability to exploit them. However, behavioral finance also argues that investors are not always rational and may be influenced by emotions or cognitive biases.

Behavioral Finance Argues That