Systematic behavioral trends can be defined as the:
A)Bandwagon effect and the week-end effect
B)Regular patterns in the behavior of people in firms
C)January effect and the small firm effect
D)Fact that prices in financial markets follow systematic patterns that are the result of market psychology

Question

Quizplus · Accepted Answer

Systematic behavioral trends refer to regular patterns in the psychological behavior of market participants that lead to predictable movements in financial markets. The January effect and the small firm effect are specific examples of these trends, but the broader concept encompasses any pattern of behavior that can be observed across a wide range of market conditions. The bandwagon effect and the week-end effect are also examples of market psychology, but they are not necessarily indicative of systematic behavioral trends. Option B is incorrect because it only relates to the behavior of people in firms, not financial markets.

Systematic Behavioral Trends Can Be Defined as The