Question

Behavioral finance would explain many market anomalies toA) the influence of human emotions and biases on securities markets.B) random price movements that only appear to have a rational explanation.C) poorly understood aspects of market efficiency.D) illegal manipulation of securities prices.

Answer 1

Answer: Option A

Explanation: In simple words, Behavioral finance refers to the impact that the behavior and thinking of an investor or analyst have on the securities market.

The behavioral finance is based on the assumption that the investors are not always rational and sometimes makes decision based on their own biases.

Hence from the above we can conclude that the correct option is A.