Behavioural finance is best defined as:
A) The area of finance dealing with the implications of reasoning errors on financial decisions.
B) The belief that your abilities are better than they really are.
C) Taking an overly optimistic view of potential outcomes
D) Searching for (and giving more weight to) information and opinion that confirms what you believe rather than information and opinion to the contrary.
E) The tendency of individuals to make different (and potentially inconsistent) decisions depending on how a question or problem is framed.
Correct Answer:
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