Principles of Corporate Finance
Principles of Corporate Finance
13th Edition
ISBN: 9781260465099
Author: BREALEY, Richard
Publisher: MCGRAW-HILL HIGHER EDUCATION
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Chapter 13, Problem 19PS

Behavioral finance True or false?

  1. a. Most managers tend to be overconfident.
  2. b. Psychologists have found that, once people have suffered a loss, they are more relaxed about the possibility of incurring further losses.
  3. c. Psychologists have observed that people tend to put too much weight on recent events when forecasting.
  4. d. Behavioral biases open up the opportunity for easy arbitrage profits.
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