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kherson [118]
4 years ago
12

If information processing was perfect, many studies conclude that individuals would tend to make __________ decisions using that

information due to __________.
a. less than fully rational; behavioral biases
b. fully rational; behavioral biases
c. less than fully rational; fundamental risk
d. fully rational; fundamental risk
e. fully rational; utility maximization
Business
1 answer:
blondinia [14]4 years ago
4 0

Answer: a. less than fully rational; behavioral biases

Explanation:  Information processing errors consist of forecasting errors , overconfidence  and conservatism which can lead investors to misestimate the true probabilities of possible events or associated rates of return; and assuming information processing was perfect, individuals would tend to less-than-fully rational decisions due to behavioral biases as confirmed by several studies.

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