Behavioural finance-mixing finance with psychology-tries to explain the occurrence and persistence of securities mispricing.

Question

Quizplus · Accepted Answer

Behavioural finance incorporates insights from psychology to understand the behavior of market participants and the resulting impact on securities prices. Specifically, it seeks to explain why mispricing can occur in financial markets and why such mispricing may persist over time.

Behavioural Finance-Mixing Finance with Psychology-Tries to Explain the Occurrence and Persistence