Question

Required 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. As with technical trading rules, behavioralists can always find some pattern in past data that supports a behavioralist trait.

Answer 1

Answer:

ALL OF THE ABOVE

Explanation:

Behavioral finance is an interesting mix of psychology and finance which deals with the effect of psychology on the behavior of investors.

Looking at the options given in the scenario they all show traits of investors behaving in a way that portrays psychological reaction

Hence it can be concluded that Problems with behavioral finance include ALL OF THE FOLLOWING:

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. As with technical trading rules, behavioralists can always find some pattern in past data that supports a behavioralist trait.