Which of the following is not an assumption of traditional finance?
A)You are assumed to act logically all the time in seeking to maximize your pleasure
B)You have perfect knowledge of all the information you need to make proper decisions
C)You have full capability for recalling past experiences accurately
D)You also have the intellectual capacity to make the right decisions at all times
E)All of the above are assumptions of traditional finance

Question

Quizplus · Accepted Answer

Traditional finance is based on the assumptions that individuals act rationally and logically to maximize their utility, have perfect information, can recall past experiences accurately, and possess the intellectual capacity to make optimal decisions. Therefore, all the options listed (A, B, C, D) are indeed assumptions of traditional finance.

Which of the Following Is Not an Assumption of Traditional