Behavioral finance argues that A. even if security prices are wrong, it may be difficult to exploit them. B. the failure to uncover successful trading rules or traders cannot be taken as proof of market efficiency. C. investors are rational. D. even if security prices are wrong, it may be difficult to exploit them and the failure to uncover successful trading rules or traders cannot be taken as proof of market efficiency. E. All of the options are correct.

even if security prices are wrong, it may be difficult to exploit them and the failure to uncover successful trading rules or traders cannot be taken as proof of market efficiency.

Explanation:

Behavioural finance is defined as the effect of psychology of investors and financial analysts. It states that decisions by investors are not always rational but coloured by their biases.

Behavioural finance brings out the difference between what a rational investor will do and what is actually available.

So even when prices are wrong instead of rationally exploiting them investors may choose otherwise.

Also efficiency of market cannot be inferred from lack of successful trading rules of traders