Problems with behavioural finance include:
I. the behaviouralists tell us nothing about how to exploit any irrationality
II. the implications of behavioural patterns are inconsistent from case to case, sometimes suggesting overreaction, sometimes underreaction
III. like technical trading rules, behaviouralists can always find some pattern in past data that supports a behaviouralist trait
A)I only
B)II only
C)I and III only
D)I, II and III

Question

Quizplus · Accepted Answer

Behavioural finance faces criticism for not providing clear strategies to exploit irrationality (I), having inconsistent implications (II), and being able to find patterns in past data similar to technical trading rules (III).

Problems with Behavioural Finance Include