Conventional finance theory assumes investors are ________ and behavioural finance assumes investors are ________.

Question

Quizplus · Accepted Answer

Conventional finance theory assumes that investors are rational and make decisions based on maximizing their own self-interest. On the other hand, behavioural finance assumes that investors are often irrational and make decisions based on biases and emotions rather than pure rationality.

Conventional Finance Theory Assumes Investors Are ________ and Behavioural Finance