The study of the cognitive processes and biases associated with making financial and economic decisions.
A) asset pricing model
B) behavioral finance
C) efficient market hypothesis
D) stock market bubble

Question

Quizplus · Accepted Answer

Behavioral finance is the study of how psychological biases can affect financial decision making. It looks at how people may make irrational decisions, ignore data, or behave in unpredictable ways, leading to market inefficiencies. The other choices listed are models or phenomena related to financial markets, but do not specifically deal with cognitive biases in decision making.

The Study of the Cognitive Processes and Biases Associated with Making