The first behavioral finance theme involves the concept of heuristics. This term means a rule-of-thumb strategy or good guide to follow in order to shorten the time it takes to make a decision.

Question

Quizplus · Accepted Answer

This statement is true. Heuristics are mental shortcuts that allow individuals to make decisions quickly and efficiently. They can be helpful in many situations, but can also lead to biases and errors in judgement if not used appropriately.

The First Behavioral Finance Theme Involves the Concept of Heuristics