Traditional finance theories assume that investors while behavioral finance assumes that they Select one: A. may not be rational, are rational B. are rational: may not be rational C. are irrational; are irrational D. may not be rational: may not be rational E. are rational; are rational Suppose the U.S. government decides to increase the budget deficit. Which of the following will most likely increase? Select one: O A. interest rates OB. government borrowing C. unemployment OD. both A and B E. none of the above Which one of the following error or bias may explain why active investments management is more prevalent than passive investments management? Select one: O A. Forecasting errors B. Overconfidence C. Conservatism D. Regret avoidance O E. Mental accounting Which of the following statement is true? WX (Daily) 11.14 Apr May Jun Jul Aug Sep Oct Nov Dec 019 Feb Mar ARSI(14) 31.86 019 Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Select one: A. There is RSI bearish divergence but not bullish divergence O B. There is no RSI bullish divergence and no bearish divergence C. There is RSI bullish divergence but not bearish divergence D. There are both RSI bullish divergence and bearish divergence Ben has purchased some hot stocks that nearly all his friends have invested in. Gloria has invested in some stocks that none of her friends has purchased. If both Ben's and Gloria's stocks fall 20%, the regret theory would predict that Select one: A. Gloria will have more regret over the loss than Ben B. Ben will have more regret over the loss than Gloria C. Ben and Gloria's risk aversion will increase in the future O D. Ben and Gloria will have equal regret over their losses