Behavioral finance thinks markets can be inefficient

(a) Due to the fact that humans are not always rational

(b) Due to the fact that humans have cognitive failures

(c) Due to the fact that we sometimes avoid trading with some counterparties, which reduces trading (and therefore the overall price discovery process)

(d) All the above

A significant foundation of finance is the acknowledgement that GAAP accounting doesnt seek to measure a companys current valuation

(a) And therefore, finance revisits the value of equity and interposes market capitalization

(b) And therefore, finance seeks to revalue assets for items that accounting doesnt value

(c) And therefore, finance uses book value shareholders equity as an appropriate measure

(d) And therefore, finance adds back depreciation to asset values to re-approximate full value

(e) Both (a) and (b)