HRS - Ask. Learn. Share Knowledge. Logo

In Business / High School | 2025-07-07

What does behavioral finance study?
A. Efficient markets
B. Corporate profits
C. Why individuals and markets deviate from rational decision-making
D. Risk-free investments

Asked by koley18

Answer (2)

Behavioral finance studies the psychological factors that affect financial decision-making, exploring how and why individuals and markets deviate from rationality. It examines cognitive biases, emotional influences, and resulting market anomalies. This field challenges traditional finance theories by highlighting the impact of human behavior on economic outcomes. ;

Answered by GinnyAnswer | 2025-07-07

Behavioral finance studies the psychological factors influencing financial decision-making, focusing on why individuals and markets often act irrationally. It examines cognitive biases, emotional influences, and market anomalies. Thus, the correct answer to the question is C: Why individuals and markets deviate from rational decision-making.
;

Answered by Anonymous | 2025-07-12

Related Questions in Business

[Done] When the yield to maturity of a bond goes up, the price typically: A. is determined by market factors B. goes down C. does not change D. goes up

[Done] A type of life insurance policy that requires premiums only for a specified number of years or to a specific age is called a: A. term life policy B. limited pay policy C. key man insurance policy D. split dollar policy

[Done] Which of the following correctly explains how the concept of demand affects the change in use of credit? Select the two correct answers. A. High interest rates yield low demand for credit. B. Low interest rates yield high demand for credit. C. High interest rates yield high demand for credit. D. Low interest rates yield low demand for credit. E. Both low and high interest rates yield low demand for credit because consumers see it as an indicator that the market is not in equilibrium. Demand is highest when rates are neither too high nor too low.

[Done] A company is researching mining at four different land areas using different types of equipment. The table below shows the costs of land, equipment, mining, and reclamation for the four locations: | Locations | Cost of land | Cost of equipment | Cost of mining and reclamation | Time taken to mine the area | | --------- | ------------ | ----------------- | -------------------------------- | --------------------------- | | 1 | $100,000 | $10,000 | $5,000 per day | 30 days | | 2 | $35,000 | $6,000 | $4,500 per day | 45 days | | 3 | $30,000 | $7,500 | $3,500 per day | 120 days | | 4 | $40,500 | $8,000 | $7,000 per day | 65 days | Considering all costs, which location will cost the least for the company to mine? A. Location 1 B. Location 2 C. Location 3 D. Location 4

[Done] Internal-operational communications are messages that A. are circulated both inside and outside a business B. get an organization's work done C. are sent between competing organizations within the same industry D. employees send to discuss strictly personal matters