What are the two generally accepted irrational behavior categories that behavioral finance observers?

1 answer:

3 0

Traders do no longer always method facts correctly and feature wrong probability distributions about destiny quotes of returns. traders make inconsistent or systematically suboptimal decisions.

A subset of suboptimal selection making can be characterized as you decide to pick out a low-probability but the high-payoff alternative (e.g., playing slot machines or shopping for lottery tickets) over an excessive-chance, low-payoff alternative (not gambling), such that the internet predicted to go back is much less than what one has.

The suboptimal method is below the most efficient (great possible) level or well-known. The words greatest and most appropriate each describe a super or best degree, diploma, result, or comparable issue. Suboptimal approach something has fallen quick to that degree. it's far often used in phrases like suboptimal overall performance and suboptimal conditions.

Learn more about suboptimal decisions here: brainly.com/question/25226643

#SPJ4

You might be interested in

Spirituals are complex, yet straightforward, with no repetition.<br> a. True<br> b. False

sdas [7]

False, often they have to repeat things in spirituals.

3 0

3 years ago

Read 2 more answers

2. A lowland between higher lands is called a

Brrunno [24]

Answer: Valley

Explanation: Valleys are among the most common features in the world. They are a stretch of land that lies between hills and normally has a river running through it. In addition, valleys are typically formed by erosion which is the gradual breakdown of materials.

6 0

3 years ago

The year is 1492, and a European man has spotted an island he later calls Hispaniola. After he arrives, the island comes under S

Aleks [24]

Christopher Columbus is the correct answer.

3 0

3 years ago

Ethics seeks an account of how and why people should act a certain way, rather than how they do act. this nature of ethics makes

Diano4ka-milaya [45]

<span>ethics seeks an account of how and why people should act a certain way, rather than how they do act. this nature of ethics makes it a(n) normative discipline.</span>

8 0

4 years ago

How many people live in nyc?

tamaranim1 [39]

Answer:

As of 2019 8.419 million.

Explanation:

6 0

3 years ago