please choose the best option

Question 1 Which of the following is not correct when it comes to applying your knowledge of findings from the field of behavioral finance? First, you can be alert to and counteract your natural tendencies toward investor bias and framing. Be aware of how your tendency to frame can lead to poor investment decisions. Counteract your natural tendencies to make bad investment decisions by being alert. Be alert to your biases and how they might influence your investment decisions. Give in to your biases and let them guide your investment decisions. Question 2 Your best protection against your own behavioral impulses is to: take your entire portfolio into account. have a plan based on an objective analysis of goals. all of the answers are correct. know your risk tolerance and constraints. Question 3 Financial bubbles attract fraudulent schemers as well as investors and speculators. To avoid fraud you can: all of these. do your own research and gather as much independent information on the investment as possible. know that "If it seems too good to be true, it probably is." be alert to the investment advisor who pushes a particular investment. Question 4 A Pyramid scheme occurs when returns are created by new deposits rather than by real investment earnings True False Question 5 One kind of investor behavior that leads to unexpected decisions is bias, a predisposition to a view that inhibits objective thinking. One bias that can affect investment decisions is overconfidence, which means: you have too much faith in the precision of your estimates, causing you to underestimate the range of possibilities that actually exist. you prefer the familiar to the unfamiliar or the known to the unknown. investors rely on information to make informed decisions, but not all information is readily available. you cannot integrate new information into your thinking because you are too anchored to your existing views Question 6 When it comes to investing, people always act rationally; therefore, the stock market is always efficient. True False Question 7 The efficient market theory is the idea that the market works best when prices reflect all available information, implying that the market price represents an unbiased estimate with an equal chance that stocks are over- or undervalued. True False Question 8 Economic forces and financial behavior can converge to create extreme markets or financial crises, such as booms, bubbles, panics, crashes, or meltdowns. The pattern of a financial crisis is: new discovery - economic expansion - increased production/wealth - lower interest rates - market crash - asset bubble. increased production/wealth - lower interest rates - market crash - asset bubble - new discovery - economic expansion. new discovery - economic expansion - increased production/wealth - lower interest rates -asset bubble - market crash. economic expansion - increased production/wealth - lower interest rates - market crash - asset bubble - new discovery. Question 9 Framing refers to the way you see yourself and define the context of your investments based on your own self-awareness. True False Question 10 Fundamental analysis is: the process of estimating security value by evaluating past performance and macroeconomic and industry factors. the process of estimating security value solely on the basis of past performance as an indicator of future performance. the practice of basing investment strategy on predictions of future market changes or on asset return forecasts. a "buy-and-hold" strategy