Business Studies, asked by Varunsharma2669, 11 months ago

Difference between traditional theories, modern theories and behavioural finance .

Answers

Answered by TheKingOfKings
0

These biases can affect all types of decision- making, but have particular implications in relation to money and investing. Behavioral finance is an add-on paradigm of finance, which seeks to supplement the standard theories of finance by introducing Behavioral aspects to the decision-making process.

Answered by lovingheart
1

Difference between traditional theories, modern theories and behavioral finance:

  • Modern theory in finance helps in the calculation of the accounts based on the assumptions and not analyzing the past histories in finance.
  • While in the case of traditional theory, the decisions in finance are taken on the basis of the tax returns, capital markets which affect the total value of the firm.
  • Behavioral finance is a study which involves the psychological behavior of the investors in the process of finance.

TO KNOW MORE:

What is behavioral economics?

https://brainly.in/question/1904853

Explain different human bahavior theory in the context of behavioral finance

https://brainly.in/question/5840228

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