Which of the following best describes behavioural finance?
A)Behavioural finance-mixing finance with psychology-tries to explain the occurrence and persistence of accurate securities pricing.
B)Behavioural finance-mixing finance with psychology-tries to explain the occurrence and persistence of securities mispricing.
C)Behavioural finance-mixing finance with sociological economics-tries to explain the occurrence and persistence of accurate debt securities mispricing.
D)Behavioural finance-mixing finance with psychology-tries to explain the occurrence and persistence of securities legislation.
E)CHOICE BLANK

Question

Quizplus · Accepted Answer

Behavioural finance is an interdisciplinary approach that combines finance and social psychology to explain the occurrence and persistence of securities mispricing. It suggests that investors often make irrational decisions based on behavioural biases and cognitive errors, causing asset prices to deviate from their intrinsic values.

Which of the Following Best Describes Behavioural Finance