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NikAS [45]
2 years ago
3

If behavioralists are correct about limits to arbitrage activity, then the absence of profit opportunities does not necessarily

imply that markets are:______
Business
1 answer:
Tanzania [10]2 years ago
4 0

If behavioralists are correct about limits to arbitrage activity, then the absence of profit opportunities does not necessarily imply that markets are efficient.

Confirmation bias occurs when investors tend to accept information that confirms their existing beliefs about an investment. When information is revealed, investors readily accept it, even if the information is inaccurate, to ensure that their investment decisions are correct.

Behavioral Finance is the study of the effects of psychology on investors and financial markets. Arbitrage activity focuses on explaining why investors often lack self-control, act against their best interests, and make decisions based on personal biases rather than facts.

Learn more about arbitrage activity at

brainly.com/question/17356404

#SPJ4

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