n NISM Certifications
XXI NISM Series XXI-A
Medium

Which of these are at the core of behavioral finance? (A) Estimation Errors (B) Biases (C) Cognitive Errors

Practice question from NISM XXI A for PMS - Mock Test 6 — bank. The correct answer is highlighted below with a full explanation.

Options

  1. A

    Only A and B

  2. Only B and C

    Correct answer

  3. C

    Only A and C

  4. D

    All A, B, and C

Why this is the answer

Behavioral finance focuses on biases and cognitive errors that influence investor decision-making. Estimation errors are a different concept related to forecasting inaccuracies.

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