Which of the following statements is true when comparing behavioural research with capital markets research?

Question

Quizplus · Accepted Answer

Behavioural research focuses on the behaviour of individual investors and how they react to financial reporting, while capital markets research looks at how financial reporting affects the market as a whole, and how investors collectively respond to it. Therefore, statement C is true. Option A is incorrect because capital markets research focuses on the collective impact, whereas behavioural research looks at individual responses. Similarly, option B is incorrect because behavioural research analyses individual responses, but capital markets research focuses on the market as a whole. Option D is incorrect because there is at least one correct option.

Which of the Following Statements Is True When Comparing Behavioural