In relation to behavioural finance,if investors do not seek to maximise returns on investments but are quite willing to accept a lesser outcome or return,it is called:
A) trading noise.
B) herding instinct.
C) framing behaviour.
D) heuristic behaviour.

Question

Quizplus · Accepted Answer

This behaviour where investors do not seek to maximise returns and are willing to accept a lesser outcome is called heuristic behaviour. It can be described as quick and effortless decision-making based on simplified mental processes, which may not always lead to the most rational decisions.

In Relation to Behavioural Finance,if Investors Do Not Seek to Maximise