Behavioral finance assumes that investors are rational

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True or False Questions:

1. Efficient Market Hypothesis and Random Walk Theory both believe it is impossible to "beat the market" consistently.

2. Behavioral Finance assumes that investors are rational.

3. There were no advance warning signs of the housing market crisis that occurred in 2007-2008.

4. Investor Sentiment is generally more reliable at identifying bottoms in a market than tops.

5. You should always utilize contrarian thinking when evaluating the financial markets.

6. If your friend tells you that he is "short oil," it means that she is only trading oil for a few days.

7. Socionomics suggests that social mood influences politics and the financial markets, not the other way around.

8. The trend of a market is generally more important than investor sentiment.

9. There are more public companies (listed on an exchange, etc.) now than there were 20 years ago.

10. Burton Malkiel taught one of the first behavioral finance classes in the United States.

Reference no: EM131556444

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