According to behavioural finance proponents:
A) Stock markets behave accordingly to patterns that repeat themselves every four years.
B) The economic cycle and stock market behave or exhibit a strong correlation with one another.
C) Investors behave rationally by considering all available information in the decision-making process.
D) Investors' emotions affect stock prices and markets and that those making investment decisions should be aware of this.

Question

Quizplus · Accepted Answer

Behavioral finance suggests that investors' emotions and psychology play a significant role in financial markets, affecting stock prices and investment decisions. This contrasts with the traditional view that markets are always rational.

According to Behavioural Finance Proponents