Problems with behavioral finance include:
I.the behavioralists tell us nothing about how to exploit any irrationality
II.the implications of behavioral patterns are inconsistent from case to case,sometimes suggesting overreaction,sometimes underreaction
III.like technical trading rules,behavioralists can always find some pattern in past data that supports a behavioralist trait
A) I only
B) II only
C) I and III only
D) I, II and III

Question

Quizplus · Accepted Answer

Behavioral finance faces criticism for not providing clear strategies to exploit irrationalities, having inconsistent implications, and often finding patterns in past data that may not be reliable.

Problems with Behavioral Finance Include