(完整版)投资学第7版TestBank答案12

Chapter12BehavioralFinanceandTechnicalAnalysis260MultipleChoiceQuestions1.Conventionaltheoriespresumethatinvestors____________andbehavioralfinancepresumesthatthey____________.A)areirrational;areirrationalB)arerational;maynotberationalC)arerational;arerationalD)maynotberational;maynotberationalE)maynotberational;arerationalAnswer:BDifficulty:Easy2.ThepremiseofbehavioralfinanceisthatA)conventionalfinancialtheoryignoreshowrealpeoplemakedecisionsandthatpeoplemakeadifference.B)conventionalfinancialtheoryconsidershowemotionalpeoplemakedecisionsbutthemarketisdrivenbyrationalutilitymaximizinginvestors.C)conventionalfinancialtheoryshouldignorehowtheaveragepersonmakesdecisionsbecausethemarketisdrivenbyinvestorsthataremuchmoresophisticatedthantheaverageperson.D)BandCE)noneoftheaboveAnswer:ADifficulty:Easy3.Someeconomistsbelievethattheanomaliesliteratureisconsistentwithinvestors’____________and____________.A)abilitytoalwaysprocessinformationcorrectlyandthereforetheyinfercorrectprobabilitydistributionsaboutfutureratesofreturn;givenaprobabilitydistributionofreturns,theyalwaysmakeconsistentandoptimaldecisionsB)inabilitytoalwaysprocessinformationcorrectlyandthereforetheyinferincorrectprobabilitydistributionsaboutfutureratesofreturn;givenaprobabilitydistributionofreturns,theyalwaysmakeconsistentandoptimaldecisionsC)abilitytoalwaysprocessinformationcorrectlyandthereforetheyinfercorrectprobabilitydistributionsaboutfutureratesofreturn;givenaprobabilitydistributionofreturns,theyoftenmakeinconsistentorsuboptimaldecisionsD)inabilitytoalwaysprocessinformationcorrectlyandthereforetheyinferincorrectprobabilitydistributionsaboutfutureratesofreturn;givenaprobabilitydistributionofreturns,theyoftenmakeinconsistentorsuboptimaldecisionsE)noneoftheaboveAnswer:DDifficulty:ModerateChapter12BehavioralFinanceandTechnicalAnalysis2614.InformationprocessingerrorsconsistofI)forecastingerrorsII)overconfidenceIII)conservatismIV)framingA)IandIIB)IandIIIC)IIIandIVD)IVonlyE)I,IIandIIIAnswer:EDifficulty:Moderate5.ForecastingerrorsarepotentiallyimportantbecauseA)researchsuggeststhatpeopleunderweightrecentinformation.B)researchsuggeststhatpeopleoverweightrecentinformation.C)researchsuggeststhatpeoplecorrectlyweightrecentinformation.D)eitherAorBdependingonwhethertheinformationwasgoodorbad.E)noneoftheabove.Answer:BDifficulty:Moderate6.DeBondtandThalerbelievethathighP/EresultfrominvestorsA)earningsexpectationsthataretooextreme.B)earningsexpectationsthatarenotextremeenough.C)stockpriceexpectationsthataretooextreme.D)stockpriceexpectationsthatarenotextremeenough.E)noneoftheabove.Answer:ADifficulty:Moderate7.Ifapersongivestoomuchweighttorecentinformationcomparedtopriorbeliefs,theywouldmake________errors.A)framingB)selectionbiasC)overconfidenceD)conservatismE)forecastingAnswer:EDifficulty:ModerateChapter12BehavioralFinanceandTechnicalAnalysis2628.Singlementradefarmoreoftenthanwomen.Thisisduetogreater________amongmen.A)framingB)regretavoidanceC)overconfidenceD)conservatismE)noneoftheaboveAnswer:CDifficulty:Moderate9.____________mayberesponsiblefortheprevalenceofactiveversuspassiveinvestmentsmanagement.A)ForecastingerrorsB)OverconfidenceC)MentalaccountingD)ConservatismE)RegretavoidanceAnswer:BDifficulty:Moderate10.BarberandOdean(2000)rankedportfoliosbyturnoverandreportthatthedifferenceinreturnbetweenthehighestandlowestturnoverportfoliosis7%peryear.TheyattributethistoA)overconfidenceB)framingC)regretavoidanceD)sampleneglectE)alloftheaboveAnswer:ADifficulty:Moderate11.________biasmeansthatinvestorsaretooslowinupdatingtheirbeliefsinresponsetoevidence.A)framingB)regretavoidanceC)overconfidenceD)conservatismE)noneoftheaboveAnswer:DDifficulty:ModerateChapter12BehavioralFinanceandTechnicalAnalysis26312.Psychologistshavefoundthatpeoplewhomakedecisionsthatturnoutbadlyblamethemselvesmorewhenthatdecisionwasunconventional.ThenameforthisphenomenonisA)regretavoidanceB)framingC)mentalaccountingD)overconfidenceE)obnoxicityAnswer:ADifficulty:ModerateRationale:Aninvestmentsexamplegiveninthetextisbuyingthestockofastart-upfirmthatshowssubsequentpoorperformance,versusbuyingbluechipstocksthatperformpoorly.Investorstendtohavemoreregretiftheychosethelessconventionalstart-upstock.DeBondtandThalersaythatsuchregrettheoryisconsistentwiththesizeeffectandthebook-to-marketeffect.13.Anexampleof________isthatapersonmayrejectaninvestmentwhenitisposedintermsofrisksurroundingpotentialgainsbutmayacceptthesameinvestmentifitisposedintermsofrisksurroundingpotentiallosses.A)framingB)regretavoidanceC)overconfidenceD)conservatismE)noneoftheaboveAnswer:ADifficulty:Moderate14.Statman(1977)arguesthat________isconsistentwithsomeinvestors'irrationalpreferenceforstockswithhighcashdividendsandwithatendencytoholdlosingpositionstoolong.A)mentalaccountingB)regretavoidanceC)overconfidenceD)conservatismE)noneoftheaboveAnswer:ADifficulty:ModerateChapter12BehavioralFinanceandTechnicalAnalysis26415.Anexampleof________isthatitisnotaspainfultohavepurchasedablue-chipstockthatdecreasesinvalue,asitistolosemoneyonanunknownstar