Which of the following best describes behavioural finance?
A)investor behaviour is not always rational but is influenced by psychological biases.
B)investor behaviour is always rational and influenced by psychological biases.
C)only professional investors will behave rationally and logically while inexperienced investors are influenced by psychological biases.
D)investors will consider all available information when making their investment decisions and will ignore all personal biases and opinions.

Question

Quizplus · Accepted Answer

Behavioral finance recognizes that investors are not always perfectly rational and may be influenced by psychological biases. It seeks to understand and explain why investors make certain decisions that may not align with traditional financial theories.

Which of the Following Best Describes Behavioural Finance