With regard to the impact of behavioural finance and market inefficiency on corporate and managerial...

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Finance

With regard to the impact of behavioural finance and market inefficiency on corporate and managerial decision-making, which ONE of the following statements is FALSE?

Behavioural finance has implications for financial managers in deciding whether they should make decisions on the basis of market prices and their recent changes.

Financial managers can base decisions on observed market conditions without needing to consider whether financial markets are efficient or not.

Whether financial markets are efficient or not has implications for companies decisions on how they time information releases and corporate events.

Behavioural finance has implications for financial managers because the people with whom managers interact may make reasoning errors.

(Tick this option if you think that none of the statements listed are false.)

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