Behavioral Theory The behavioral theory suggests that people with OCD associate certain objects or situations with fear‚ and that they learn to avoid the things they fear or to perform rituals that help reduce the fear. This pattern of fear and avoidance/ritual may begin when people are under periods of high emotional stress‚ such as starting a new job or ending a relationship. At such times‚ we are more vulnerable to fear and anxiety. Often things once regarded as "neutral" may begin to bring
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First Exam Notes CHAPTER ONE 1. The two reasons why you (or anyone) should study financial markets and financial institutions). Answers: * Personal needs‚ your career‚ your life‚ less surprise in the future. You could not avoid financial markets and institutions anywhere * Assume us work for business‚ government; non-profit program is affected by financial institution and market. 2. Define security. Answers: * A security also called a financial instrument is a claim on
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These two theories have created debates between psychologists for many years. Hans j. Eysenck‚ Ph.D.‚ D.Sc.‚ is one of the world ’s most cited psychologists. He is a professor at the Institute of Psychiatry of the University of London‚ where he started the discipline of clinical psychology in Great Britain. He is a pioneer in the use of behavior therapy as well as research in personality theory and measurements. The biological theory has to do with his findings that individual differences in personality
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CHAPTER 11: THE EFFICIENT MARKET HYPOTHESIS PROBLEM SETS 1. The correlation coefficient between stock returns for two non-overlapping periods should be zero. If not‚ one could use returns from one period to predict returns in later periods and make abnormal profits. 2. No. Microsoft’s continuing profitability does not imply that stock market investors who purchased Microsoft shares after its success was already evident would have earned an exceptionally high return on their investments
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CHAPTER 12: BEHAVIORAL FINANCE AND TECHNICAL ANALYSIS PROBLEM SETS 1. Technical analysis can generally be viewed as a search for trends or patterns in market prices. Technical analysts tend to view these trends as momentum‚ or gradual adjustments to ‘correct’ prices‚ or‚ alternatively‚ reversals of trends. A number of the behavioral biases discussed in the chapter might contribute to such trends and patterns. For example‚ a conservatism bias might contribute to a trend in prices as
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Definitions H K C J B F A I G D Multiple Choice C D C A B C A C C D True/False T F F T T F T F T T Essay Questions 1. How do you think having good human relation skills and knowledge might add to your job security in a competitive workplace? In a competitive workplace‚ having god human relations skills can make you stand out in a good way. Being able to demonstrate a competent understanding of how people work together is going to be the first step
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Financial market is a significant factor in economy development. Through financial market‚ people are able to transfer their surplus funds to those who have shortage which enhance efficiency. China’s financial market started relatively late compared with developed countries. After the economy reform in 1978‚ China’s step by step build up its own financial system. With the continuous improvement of the financial markets‚ people are started to question about whether China’s financial market can perform
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A Behavioral Theory of the Firm by Richard M. Cyert and James G. March This book explains the model that the authors created for administrative decision making. The basis for the model the authors created has two main ideas: (1) it includes a comprehensive set of changeable categories; (2) it has a set of relational concepts. The classic model had two basic assumptions. The first assumption is that making money is always the bottom-line and the second is perfect knowledge. The classic theory was
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Behavioral Learning theories Applied Education is quite the central focus in our current society. As the economy advances‚ education becomes of greater importance and our student’s future is strongly dependent on their educational opportunities. As many theorists have proven‚ there is no one way of teaching that targets an entire audience. Instead‚ every child has their own unique learning style that they respond best to. Any educator that takes on the responsibility of teaching must familiarize
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Validity of Efficient Market Hypothesis THE CONTRASTING EVIDENCE OF THE VALIDITY OF THE EFFICIENT MARKET HYPOTHESIS There is apparently plenty of divergence relating to the validity of efficient market hypothesis (EMH)‚ some academics or financial gurus support efficient market hypothesis while there are some who assert that efficient market hypothesis and random walk theory are flawed concepts in the post-financial crisis era. Beginning with the definition of efficient market hypothesis‚ it
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