Question

Market bubbles such as the technology bubble of the 1990s and the housing bubble of 2004-2007 are best explained byA) the efficient market hypothesis.B) behavioral finance and economics.C) rational expectations theory.D) anomaly theory.

Answer 1

Answer:

B) behavioral finance and economics .

Explanation:

Behavioral finance it is the sub topic of the behavioral economics , it is depends on the theories of the stock markets , like the rise or fall of the prices of the stock market .

The main motto is to understand and track the reason for people making such financial choices .  

And the technology bubble and the housing bubble can be best explained by the behavioral finance and economics .