n NISM Certifications
X NISM Series X
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Which elements are central to behavioral finance?

Practice question from NISM Series XB- Investment Adviser (Level 2) Mock Test 6 — bank. The correct answer is highlighted below with a full explanation.

Options

  1. A

    Estimation Errors

  2. B

    Biases

  3. C

    Cognitive Errors

  4. B and C

    Correct answer

Why this is the answer

Behavioral finance focuses on biases and cognitive errors affecting investor decisions, highlighting psychological influences on financial behavior and market outcomes.

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