Multiple Choice Questions
1.
Conventional theories presume that investors presumes that they .
A)
B)
C)
D)
E)
and behavioral finance
2.
3.
are irrational; are irrational are rational; may not be rational are rational; are rational may not be rational; may not be rational may not be rational; are rational
Answer: B Difficulty: Easy
The premi of behavioral finance is that A)
B)
C)
D)
E)
conventional financial theory ignores how real people make decisions and that people make a difference.
backflipconventional financial theory considers how emotional people make decisions but the market is driven by rational utility maximizing investors.
conventional financial theory should ignore how the average person makes decisions becau the market is driven by investors that are much more sophisticated than the average person.
B and C
none of the above
Answer: A Difficulty: Easy
Some economists believe that the anomalies literature is consistent with investo'rs and .
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ability to always process information correctly and therefore they infer correct probability distributions about future rates of return; given a probability distribution of returns, they al
ways make consistent and optimal decisions inability to always process information correctly and therefore they infer incorrect probability distributions about future rates of return; given a probability distribution of returns, they always make consistent and optimal decisions ability to always process information correctly and therefore they infer correct probability distributions about future rates of return; given a probability distribution of returns, they often make inconsistent or suboptimal decisions inability to always process information correctly and therefore they infer incorrect probability distributions about future rates of return; given a probability distribution of returns, they often make inconsistent or suboptimal decisions none of the above
A)
the fourB)
C)
D)
E)
Answer: D Difficulty: Moderate
4.
Information processing errors consist ofI) | forecasting errors |
II) | overconfidence |
III) | conrvatism |
| juliet IV) | framing |
A) | I and II |
B) | 经典黑色幽默电影 I and III |
C)olympia | III and IV |
D) | IV only |
E) | swap是什么意思 I, II and III |
| 托福暑假班 | |
Answer: E Difficulty: Moderate rearch suggests that people underweight recent information. rearch suggests that people overweight recent information. rearch suggests that people correctly weight recent information. either A or B depending on whether the information was good or bad. none of the above.
Answer: B Difficulty: Moderate
6.
DeBondt and Thaler believe that high P/E result from investors河南四级听力频道是多少earnings expectations that are too extreme. earnings expectations that are not extreme e
nough. stock price expectations that are too extreme. stock price expectations that are not extreme enough. none of the above.
A)
