Solved

The Premise of Behavioral Finance Is That

Question 11

Multiple Choice

The premise of behavioral finance is that


A) conventional financial theory ignores how real people make decisions and that people make a difference.
B) conventional financial theory considers how emotional people make decisions, but the market is driven by rational utility maximizing investors.
C) conventional financial theory should ignore how the average person makes decisions because the market is driven by investors who are much more sophisticated than the average person.
D) conventional financial theory considers how emotional people make decisions, but the market is driven by rational utility maximizing investors and should ignore how the average person makes decisions because the market is driven by investors who are much more sophisticated than the average person.
E) None of the options

Correct Answer:

verifed

Verified

Unlock this answer now
Get Access to more Verified Answers free of charge

Related Questions

Unlock this Answer For Free Now!

View this answer and more for free by performing one of the following actions

qr-code

Scan the QR code to install the App and get 2 free unlocks

upload documents

Unlock quizzes for free by uploading documents