Principles of Corporate Finance (Mcgraw-hill/Irwin Series in Finance, Insurance, and Real Estate)
Principles of Corporate Finance (Mcgraw-hill/Irwin Series in Finance, Insurance, and Real Estate)
12th Edition
ISBN: 9781259144387
Author: Richard A Brealey, Stewart C Myers, Franklin Allen
Publisher: McGraw-Hill Education
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Chapter 13, Problem 6PS

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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